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The Ramsey Show

Choose the Hard Sacrifice That Leads to Freedom

07 Nov 2023

Transcription

Transcript generated automatically by AI and may contain errors.

Chapter 1: What is discussed at the start of this section?

29.258 - 51.905 Rachel Cruz

Live from the headquarters of Ramsey Solutions, it's The Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. I am Rachel Cruz, Ramsey personality, hosting this hour with best-selling author and Ramsey personality, Dr. John Deloney. And we are here to answer your calls, and it's a free call anywhere in the country at 888-825-5225.

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51.945 - 55.389 Rachel Cruz

All right, we're going to start off.

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55.469 - 58.152 Dr. John Deloney

Hold on. Whoa, whoa, whoa, whoa. It's launch day, yo.

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58.452 - 59.694 Rachel Cruz

Oh, I was going to get to a call first.

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59.814 - 60.675 Dr. John Deloney

No. It's launch day.

60.835 - 63.378 Rachel Cruz

We'll jive right headfirst into it.

63.459 - 68.265 Dr. John Deloney

We finally have a book that's at my reading level coming out of this company, and I'm excited for it.

68.445 - 78.578 Rachel Cruz

It's a children's book. I'm glad for what I have. So it's my kid's book that is out right now. So you can go and order at RamseySolutions.com.

78.598 - 81.883 Dr. John Deloney

I can't wait to buy them for all my family. It's amazing. Thank you.

Chapter 2: How can I support my spouse with student loan debt?

454.057 - 457.465 Dr. John Deloney

Because y'all make good money, it allows y'all to do stupid for longer.

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458.592 - 477.006 Rachel Cruz

Yeah, Michael, and I think, too, you know, if I was in this situation and my husband came to me and just said – and it's a – instead of a pointing fingers accusation, it is – it's a different posture, honestly, of the conversation of saying, God, what is underneath that, babe? Like, what is the thing that scares you so much that –

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476.986 - 499.584 Rachel Cruz

is making you so hesitant, not just to pay the bills, but for us to be together as a team. That's almost, Michael, more concerning to me than just $120,000 student loan bill, which needs to be paid, but this mindset shift. So I would want knowing and humility and kindness, Michael, that you wanna know her, like you wanna know what's going on and having that conversation with her.

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499.824 - 503.23 Rachel Cruz

And then on a very tactical side, just to give you something,

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503.21 - 533.149 Rachel Cruz

even pull together your income and just say hey how long map out how long would it take us to pay this off if we like really dove in and like at least give some kind of plan and let that even be a tactical step too because sometimes this idea in your head of paying off it's like i don't know how i don't know what the first step is but if you initiated that even it could be a jumping off point two into the conversation but hey we're gonna give you ramsey uh we're gonna give you fpu as our gift to you yeah hold on the line we'll give you the book uh god for what i have in fpu

536.504 - 545.414 Rachel Cruz

Welcome back to The Ramsey Show. I am Rachel Cruz hosting this hour with Dr. John Deloney. And Christmas, have y'all started shopping yet, John?

546.235 - 547.397 Dr. John Deloney

Yes, we have. You have?

547.497 - 548.198 Rachel Cruz

Yes.

548.218 - 552.723 Dr. John Deloney

Well, good for you. But we're doing it different this year. This year, we're not going to buy a thousand things.

Chapter 3: What are the underlying issues affecting our financial discussions?

660.653 - 687.572 Matt Damon

Basically, this year, we've had a lot of trouble with cash flow. Her job's not, you know, just basically paying her by check. She was working remotely, and things kind of fell behind. And y'all are feeling the stress. Yeah, we are feeling the stress. And we actually, and I mean this lightly because our marriage did,

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687.991 - 693.038 Matt Damon

kind of, uh, was a little bit on the rocks, but you know, we both want to make things work out.

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693.138 - 717.61 Matt Damon

So I guess the best way to go forward about this, cause I mean, I know I've got a little bit of, I probably got a few years as far as an uphill battle, as far as the debt, um, the snowball debt and everything, but how can I get her, um, on board with this without feeling what, you know, on the same page as me, uh, without feeling, you know, so anxious and everything. And, um,

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718.248 - 743.378 Matt Damon

basically i suggest my question yeah okay so just a couple of just tactical questions logan how much do you guys make a year um so i make around 48 on one job uh i am taking i am taking a second part-time job so um and she makes around 38 okay all right so and then um four taxes

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743.543 - 749.412 Rachel Cruz

Before taxes, sure. And then how much debt are we talking? How much student loan debt combined and credit cards combined?

749.452 - 768.922 Matt Damon

So my student loan is $6,000, which is not bad. I mean, it's just I haven't paid it in a couple of years, mainly because, well, we don't get into it. You haven't had to, yeah. How much is hers? Hers is around $17,000. Okay.

Chapter 4: How do we align our financial values as a couple?

769.502 - 770.564 Matt Damon

And how much credit card debt do you guys have?

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770.584 - 771.205

That's about that much.

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771.978 - 787.899 Matt Damon

Uh, 13. Uh, that's over two cards. One is, uh, one is approaching the max out and the, the, the culprit of it is, uh, you know, our rent's $1,700 a month right now. And, uh, there were times. Hold on, hold on, hold on, hold on.

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787.919 - 812.592 Dr. John Deloney

Logan, Logan, Logan. Yeah. Not the culprit. Not the culprit. I'm listening to you talk and you have very distant language from reality. Here's what I mean by that. We had some trouble with cash flow. No. Y'all didn't make enough money and you spent too much. The main culprit is the rent. It's not. It's not.

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813.092 - 828.732 Dr. John Deloney

The main culprit is we have chosen to make 38 and 48 and not work one job, two jobs, three jobs. We've chosen to live in a city. All of the healing that has to happen in this household is going to start with y'all both choosing reality.

829.623 - 854.085 Dr. John Deloney

and not living in this this world is descending upon us in all these ways no dude we're gonna take it right by the horns and say what is real and what is not what is real is we are broke what is real is dude you don't have a ton of debt you have too much but i thought you're gonna say 150 000 the way you're just sounding like eeyore like oh well it's all coming down Bro, it's not.

854.105 - 858.972 Matt Damon

You know what I mean? It feels like it by my standards because this wasn't a problem two years ago.

859.593 - 879.424 Dr. John Deloney

Yeah, but you stopped being intentional. Yeah, exactly. That's it. Yeah. Why'd you stop being intentional? I don't know. I'm just thinking about... Just give me a straight, right-on answer. Why'd you stop being intentional?

881.108 - 902.645 Matt Damon

I guess it's because I cared too much. The thing is, this was a philosophy. Dave's philosophy was something that was important to me, and then I found myself in this position. But I guess what I didn't do was make sure that I did the necessary things to keep us out of this position. Perfect.

Chapter 5: How can I start paying off my $70K student loans?

3358.253 - 3378.06 Matt Damon

Well, I'm 20 years old, college dropout, and I put myself in kind of I would say a decent amount of debt, a 20, which I'm not very proud of. I owe about 70K in loans. And I stress every day about it when I wake up. So I'm just trying to see you guys' view on how I should start attacking my loan.

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3378.6 - 3379.061 Rachel Cruz

Okay.

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3379.081 - 3381.364 Matt Damon

And how I can pay off my debt. Okay.

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3381.484 - 3382.565 Rachel Cruz

What's the debt in?

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3384.448 - 3392.738 Matt Damon

Well, I have 32K in one semester of student loans. And then I have... Wait, wait, one semester?

3392.858 - 3393.579 Rachel Cruz

Where'd you go to school?

3393.679 - 3399.83 Matt Damon

On Mars? Yeah. I went to a private Christian school in Minneapolis.

3399.85 - 3410.668 Dr. John Deloney

But one semester was $32,000? Yes, sir. So their total annual is $64,000?

3411.57 - 3419.104 Rachel Cruz

Per year. Okay. That's okay, Dylan. That's okay. We're going to keep moving. We're going to keep on moving. What else? What else you got? It's already happened.

Chapter 6: What financial advice is given for managing debt effectively?

3440.63 - 3453.746 Matt Damon

I needed a place to live in Minneapolis. That was like in a safe area. And that's how much the market rent was, $1,570. And then I had some income problems with that job. So I moved to Indianapolis with my roommate and I had to buy all my lease.

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3455.668 - 3457.17 Rachel Cruz

Okay. So what are you doing now for work?

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3458.952 - 3459.933 Matt Damon

I still do car sales.

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3460.514 - 3461.535 Rachel Cruz

Okay. And how much are you making?

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3462.967 - 3465.77 Matt Damon

Not a lot. I'm making less than what I owe monthly.

3466.311 - 3469.314 Dr. John Deloney

Yeah, because interest rates are tough right now, right?

3471.096 - 3475.16 Matt Damon

Well, I was blessed to have a good interest rate on my loans. No, no, no.

3475.24 - 3476.762 Dr. John Deloney

I'm saying people aren't buying cars right now.

3478.724 - 3482.448 Matt Damon

Well, it's kind of hit or miss, to be honest. Okay, so how much will you make this year?

Chapter 7: How can I balance spending on experiences and paying off debt?

3587.337 - 3588.098 Rachel Cruz

Where's your family?

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3590.141 - 3591.462 Matt Damon

My family lives in Michigan.

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3591.482 - 3592.183 Rachel Cruz

Okay.

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3593.685 - 3595.367 Dr. John Deloney

Is that a safe place for you to go live for a while?

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3597.67 - 3599.252 Matt Damon

I would say so, yes.

3600.262 - 3601.364 Dr. John Deloney

Because here's the deal.

3601.745 - 3606.393 Rachel Cruz

You're going to need some support around you, Dylan. And you're 20. Okay. So I want to give you some grace. You're a kid.

3606.574 - 3633.464 Dr. John Deloney

I mean, you're a kid. The mad at you here is that the systems that surround an 18 and 19 year old allowed you A kid just trying to do what everyone's telling you to do. You got to go get a nice car. You got to get a good sales job. You got to go to this college that costs $34,000 or whatever it was a semester. You got to go do this stuff and you can't afford it. And they let you do that.

3633.504 - 3636.85 Dr. John Deloney

And I'm just sick to my stomach, but they let you do that, man.

Chapter 8: What steps should I take after a significant life change?

3672.543 - 3681.315 Rachel Cruz

You don't have a wife. I mean, like, this is the season. This is the season to do it, to absolutely go nuts because it's the only part of the equation that's actually –

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3681.295 - 3701.717 Rachel Cruz

Going to give you some level of grounding and hopefully after a year of that approving some level of income then maybe you can get out of this car loan I want this car loan out quickly because it's not it's not worth it and so whatever you have to do to be able to say hey what can I do to qualify to sell this and get it out because I think that's going to that's the only piece of this that's going to be able to relieve some level of pressure.

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3701.697 - 3720.084 Rachel Cruz

That you can get out. So I would be I would be taking on two to three jobs. And again, you're not going to have a life, Dylan. But I think that for a season, you're going to be able to to to to knock some of this out because and the other great thing, Dylan, that just encourage you that. You're learning this at 20 years old.

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3720.384 - 3741.711 Rachel Cruz

People call this show and they're 45 that have, you know, a situation like this. So this is your moment, Dylan, of saying like, what I did isn't working. It's not working. And so I will never again find myself in this position. If I don't have the money, I don't care if it's for school. I don't care if it's for a car. If I don't have the money, I'm not buying it.

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3741.691 - 3753.088 Rachel Cruz

This needs to be a point in your story, Dylan, that you look back and you say, at 20 years old, I did some dumb stuff. It took me a little bit to get out of it, some hard work, but I got out of it, and that was it. That's the last time you know this.

3753.228 - 3764.425 Rachel Cruz

Dylan, if you get this all straightened up, especially at your age, this is where you're like, you could build some serious wealth in the future, but not with these habits and not with this mindset that you used to have.

3766.548 - 3779.949 Dr. John Deloney

Does that make sense? If you were my friend, Dylan, I would tell you to see about having a hard conversation with my mom and dad. And I say hard, it'd probably be easy, but an embarrassing one. And say, I need to move in for a year and I'm going to try to make $40,000.

3780.329 - 3790.345 Dr. John Deloney

And if I have a year with no bills and I make $40,000 and I take home 28 of that, I can start making a dent in some of these things.

3792.468 - 3797.196 Matt Damon

Yeah, I currently live in my room, and I pay about $400 a month for my part of the rent.

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