Debt Doesn’t Have to Run Your Life
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What is the show’s opening and who are the hosts?
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Normal is broke and common sense is weird. So we're here to help you transform your life. From the Ramsey Network in the Fairwinds Credit Union Studio, this is The Ramsey Show. I'm Rachel Cruz, hosting this hour with Jay Warshaw. We are answering your questions about life and money. So give us a call at 888-825-5225. Up first we have Andrew in Providence, Rhode Island. Hi Andrew, welcome to the show.
Hi guys, thanks for taking my call.
Absolutely. How can we help?
Um, so I have a question. Um, so I'm a licensed plumber and I'm very fortunate enough to have a high paying job that I've been working for going for many years. Um and a partner and I have opened up a side business that has actually turned into something within the last five years. And my question is is how do you know when it's um how do you know when it's time to stop letting fear of the unknown hold you back and actually take the leap of going full time with the business.
I love this question. So tell me more about the fear of the unknown. Like what's what's your fear? Like when you look at this, tell tell us the things that you look at and think, Oh gosh, what if that happens? What if this happens? What if that happens? Tell us what it is.
So I think a little bit of it has to do with uh financially. I mean I'm not in any debt of any sort other than my mortgage. Um but I like I said, I do have a high paying job for the field that I'm in. Okay. And within this past year I've proved to myself that the side business uh income can outdo my normal full time income.
How many months has it outdone your normal income?
А со My base My base income up to date is roughly Um, like a hundred and eighty. Okay. So my full time job and my side time uh my side job right now I'm just over three hundred thousand. Oh
my gosh. Wow, so every single month you've outpaced your normal job.
How does Andrew decide whether to quit his day job and go full‑time with his plumbing side‑business?
And that's doing it part time.
Correct. So I'm not gonna lie to you, um so I am full time during the day for my company and then I'm full time for the side hustle as well. And that's that's another reason why I'm struggling trying to figure out to make the jump because I do have a five year old child. Is it and I wanna be there.
What kind of industry is it that you're in, the side job?
Plumbing. Plumbing in H V A C.
Oh, is the side?
Correct. Yeah. So I'm not sure what
I'm
saying.
Okay. I'm so sorry. I gotcha.
But you have a partner, so if you were making three three whatever you said, you're only receiving half of that Right?
No, no, no. So we're over a million dollars this year between me and my partner.
But what's profit? What's profit?
So profit uh we're roughly like six hundred thousand between the two of us.
Wow. So you're you're taking you could take home three hundred thousand.
Yes. Yes.
Okay, so what's in retained earnings?
Uh it's w what do you mean by that? Sorry.
So your company, you guys should have some money that you're setting aside. Six months would be good, three months would be good, of money that's like, hey, this is what it takes to operate the business. If we have down months or low months, what do you guys have set aside in the business?
So right now we have roughly seventy thousand set aside in the business. Every job that we complete, 'cause it's just been a side business uh side hustle for us, um we contribute fifteen percent back into the business. Very good. Um
Okay. Yeah. And sorry, and usually these service companies, Andrew, have they don't have great margins, but yours is unbelievable. So I'm wondering how your um What this looks like with equipment and are you are you guys just going in and and fixing or are you installing? What are you guys doing?
Uh, we do everything, so we don't say no to anything. It's new construction, uh a lot of commercial uh commercial projects within the last year. Okay. And that's what's making it tough now.
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Chapters
7 chapters
1
What is the show’s opening and who are the hosts?
0:02–2:38
2
How does Andrew decide whether to quit his day job and go full‑time with his plumbing side‑business?
2:38–11:29
3
What steps are recommended for tackling credit‑card debt and creating a budget (debt snowball, cutting cards, emergency fund)?
11:29–1:01:49
4
How can a new couple start budgeting and use the Baby Steps effectively?
1:01:49–1:27:51
5
What should listeners consider before buying a home with a non‑married partner?
1:27:51–1:49:41
6
How can a widow protect survivor benefits while planning marriage and finances?
1:49:41–2:06:07
7
What steps can someone take to exit a debt‑resolution contract and avoid extra fees?
2:06:07–2:08:26