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Chapter 1: What is discussed at the start of this section?
Brought to you by the EveryDollar app. Start budgeting for free today. Normal is broke and common sense is weird, so we're here to help you transform your life. From the Ramsey Network and the Fairwinds Credit Union Studio, this is The Ramsey Show. I'm Dave Ramsey, Rachel Cruz, Ramsey personality, number one best-selling author, and my daughter is my co-host today.
Open phones here at 888-825-5225. Charles is in Seattle. Hey, Charles, how are you? Good. How are you, Dave? Better than I deserve. What's up?
Just wanted to get your advice. A longtime listener. Really respect your stance on just about everything. And got two adults still living at home. Not really sure, you know, what they want to do with their futures. And just trying to figure out the best way to stress to them the importance of financial independence.
You know, especially if something happens to their mom and I. You know, how are they going to make it on their own?
How old are they?
21 and 19.
Okay, so young. At least they're not 34. You're ahead of the game, Charles.
Yeah, a little bit, yeah.
Okay, so, I mean, there's a lot of things you can do. I think the thing I would do is just, I go back to my friend Andy Andrews. He used to say, we're not raising our kids to be great kids. We're raising them to be great adults. We're training them how to be great adults. And so I would just have a conversation along that line that just says, hey, I'm your dad and I love you.
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Chapter 2: How can I encourage my adult children towards financial independence?
Okay. And so they're just comfortable?
Yes, that's a great word, Dave.
And they're not bad kids. Otherwise, you'd have been throwing them out anyway.
Yeah.
Yes, sir. You just don't want them to be, you know, in their mother's basement when they're 34, and that's a good dad. Okay, so the always thing I think about is this. I always think about the picture of the eagle. The eagle builds its nest out of the most grotesque six-inch long thorn bushes. the thorns are six inches long.
And then it meticulously fills the nest full of down to where the baby eagles when they're born do not feel a single point off of the thorns. As the baby eagles are born and start to mature, the mother eagle systematically begins to remove the down from the nest a little at a time.
Is this true?
This is true.
This goes well with your analogy.
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Chapter 3: What strategies can help my children manage their future?
It is not tough love. That is just love. Is the mother eagle being tough when she makes those thorns exposed? No, because that eagle sitting in that nest.
For survival. Exactly.
It can't stay.
Yeah.
You know, three adult, four adult eagles can't stay in a nest. I mean, come on. Hello. And now turkeys, turkeys can do that.
Yeah.
Just flop around.
An eagle that fails to fly is called a turkey. That's the way this works. So, yeah. That's a great question, Charles. I appreciate your heart. Yeah. And we don't recommend being rude or mean or nasty or something like that. Some cultures are more abrupt about this than other cultures.
Or the opposite. They're very much more, you know, communal.
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Chapter 4: Why is it important to set goals for financial independence?
The biggest difference is usually your high-yield savings is going to be with a bank, and you've got those transfer capabilities. It's just easier to manage. But the rate might be not different at all.
It's not that significant. It's usually a little bit higher with high yield.
A high yield savings account is probably a 5 or a 10-year-old product. Money market accounts have been around for 50 years. And so, you know, when we first started teaching this stuff, we're like, you know, don't put it in a stupid 1% or half a percent savings account, passbook savings, they call it, at your bank. Don't do that.
And don't put it in a CD because you get penalties if you withdraw it because your engine blew on your car. So use a money market account. And at that time, banks were starting to open these accounts. They called money market accounts, but they were kind of mirroring the actual money markets is what they were doing. Most of those have been rebranded to high-yield savings accounts now.
And so it's basically CD rates that are fully accessible. And, you know, that's the reason Rachel's saying that, and she's exactly right.
Yeah, but, Jeb, seriously, go to fairwinds.org slash Ramsey, and there's the smart bundle. And so you can get that all, you know, taken care of. And you can, you know, you're engaged. You'll have your wedding soon. So you guys open up one for a high-yield savings account for the wedding and put your names on it and start budgeting out of that so you pay cash for the wedding.
Yeah.
Megan is in Nashville. Hi, Megan. How are you?
Hi, I'm good. How are you doing?
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Chapter 5: What should I do if I'm $55,000 in debt and can't cover my bills?
Have you switched your example if they play bridge because mom plays bridge now? Is that what makes you think?
Mahjong or bridge? I've got these things stuck in my head from random locations. I was going to say, mom goes on like... Uncle Charlie goes to church with you or whoever it is.
Yeah, but you added bridge. I was like, is that a slight against mom? That's a new one.
I don't know. Yeah, but you don't want to pick... But she does tournaments. My wife's bridge partner is not how I pick a real estate agent. Not a chance.
Or Mahjong.
They're good with math, but that doesn't mean they need to be my real estate agent. All right.
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Chapter 6: How can I manage my income while in debt?
Jerry is in Atlanta. Hi, Jerry. How are you? Hey, how are you doing? I'm good. Good. How can we help?
Well, I am $55,000 in debt and I'm trying to figure out a way to get out of it. And I don't make enough to cover it.
How much do you make?
Chapter 7: What should I consider before selling my house?
A month. Flex rates between $1,200 to $2,200 a month. Why? What do you do? Right now I work delivery gigs.
Chapter 8: How do I transition to a single income family?
Why? Why don't you get a job?
I had a job. So I've been in the restaurant business for 12 years.
You've been in what business? I'm sorry, what business?
Restaurant. Restaurant business. Working restaurant. What were you doing at the restaurant?
I worked at Papa John's. I worked at Fellini's.
I know.
What did you do at the restaurant?
Oh, fuck. Chef, cook, dishwasher, front house, back house. How old are you, Jerry? I am 36 years old.
Okay. All right. So your problem is an income problem. I think you already knew that before you called, right? Correct. You don't make any money. You're at the poverty level. And that's not a put-down. It's a mathematical observation. So what are we going to do to fix that? And then we fix the other thing.
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