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The Ramsey Show

Higher Pay Doesn't Always Require A Degree (Hour 1)

26 May 2023

Transcription

Transcript generated automatically by AI and may contain errors.

Chapter 1: What is the main topic discussed in this episode?

29.697 - 48.583 Ken Coleman

Live from the headquarters of Ramsey Solutions, broadcasting from the POTS moving and storage studio, this is the Ramsey Show. It's where America hangs out to have a conversation about your life, specifically your money, your relationships, and your work. You cannot enjoy life if those three areas of your life aren't there.

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48.563 - 65.256 Ken Coleman

in alignment, and there is peace in those areas, and we're here to help you. The number is 888-825-5225. That's 888-825-5225 to jump in. I'm Ken Coleman. I'm joined by my colleague, Dr. John Deloney, and we're here for you this hour.

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Chapter 2: Should I go to college if I already have a business?

65.236 - 80.494 Ken Coleman

And so it's time. Some of you are going, I've been listening, I've been watching, and I need some guidance, and we're here to help. Again, the number is 888-825-5225. Fantastic-looking live studio audience in the lobby, John.

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81.301 - 84.587 Dr. John Deloney

Yeah, it's pretty amazing. You're probably here to see Dave, but you got us, guys.

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84.647 - 96.508 Ken Coleman

Good to see you. It's okay. We're used to disappointing people. It won't faze us at all. Let's get to Trevor to get the calls and the coaching started. Trevor joins us in Detroit, Michigan. Trevor, how can we help?

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97.737 - 113.44

Hi. So I'm in college right now, and I'm here to ask you whether or not you think I'm making the right choice to be in college because it's about $125,000, and I'm going for business, and I already have about $40,000 saved.

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114.381 - 130.008 Ken Coleman

Okay. Are you a freshman, sophomore? Where are you at in the journey? I just finished my first year. Okay. And you got $40,000 saved. Are you using that? Essentially, is that going to be whittled down over the next couple years as you pay as much as you can for the $125,000?

130.93 - 149.941

Right now, I'm just investing it, and I'm trying to decide what the right thing to do with it is. How are you paying for school? So I have loans out right now, just student loans, and my dad is paying the interest off on it. So he's paying the interest off until I'm done, like I graduate.

150.061 - 153.145 Ken Coleman

So three years from now, you're going to have $125,000 in debt.

153.986 - 155.127 Dr. John Deloney

Yes. Do not do that.

Chapter 3: What high-paying jobs don’t require a degree?

155.547 - 158.611 Ken Coleman

Yeah, for sure. Whether college is the issue or not, we'll get to that.

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159.111 - 163.536 Dr. John Deloney

What happened after this first year that is making you rethink your plan?

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164.748 - 183.631

Well, I already have my own kind of small business. I'm actually working right now, but I'm only 18 years old, and I have $40,000 in the bank, and I think I'm on track to have $100,000 by the time I graduate. What's the business? I do mobile car detailing.

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184.031 - 187.836 Ken Coleman

And what are you going to make this year? Give us a realistic projection.

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188.98 - 198.894

So the thing is, I can only do it during the summer. I can't do it when I'm in college. So around maybe a little over $15,000 this summer. All right, and let me ask you this.

198.914 - 218.042 Ken Coleman

Have you done it enough to where you can say with certainty that this is something that you want to do at least for, let's call it, the next three, five, seven years? Does it mean you're locked into that business for the rest of your life, but you know you want to do it, or it has revealed to you that you want to work for yourself and be an entrepreneur? What's the answer to that question?

218.309 - 225.679

I know 100% I want to work for myself, and I'm definitely willing to do this for at least a few more years.

227.161 - 249.909 Ken Coleman

And then come up with the next idea, correct? Yeah. Yeah, I personally, this is how we answer, what would I do if I were you? And I'm going to take another step and answer it as if I were your dad. If I were your dad and if I were you, I would be fine with you pausing, The college journey right now, because number one, you don't have the money for it.

249.929 - 267.283 Ken Coleman

You got 40 of the 125, but even then you don't have the money and you have to work like crazy to pay your way through. I don't think a business degree is going to teach you anything that you won't learn working for yourself and hanging out with small business owners who maybe are in the same industry that you're in or in a similar type situation.

Chapter 4: How can couples effectively communicate about money?

287.975 - 308.389 Ken Coleman

But in this case, the two-part question, John, that I always ask people is, that I think really brings it right down to brass tacks. Is college, specifically a degree, the only way to do what you want to do, or is it the best way? And in this case, Trevor, I think the answer is no. It's not the best way. It's certainly not the only way.

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308.669 - 333.165 Dr. John Deloney

Well, and I just did a quick Google search while we were talking, and the Michigan Reconnect Scholarship, you turn 25, community college is free where you live. Okay. And so there's something to be said for you. You have a year of credits. Go work for a full year. And by the way, I don't believe you that you can't do mobile detailing and go to college at the same time. That's not true.

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333.827 - 354.824 Dr. John Deloney

But you can get out and work. Work hard. And when I say work hard, I mean work really, really hard. And you've got a year of college under your belt. You've got a year of working really hard under your belt. Then you can make an informed decision. Right now, I feel like your main goal in life isn't starting a business. It isn't getting a career. It isn't getting a degree.

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355.205 - 362.138 Dr. John Deloney

Your main goal is getting $100,000 in the bank like it's some unicorn that you want to capture. Am I on to something?

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362.489 - 371.422

Yeah, can I just say the only reason I can't do it year-round is because I'm in Michigan, so with snow and stuff, I can't work outside when it's snowing, you know?

371.522 - 379.774 Ken Coleman

No, I agree with you on that, and you can't do it full-time to make the kind of money you want to make and go to school. And I think in this case, choosing to work for yourself is the better choice.

380.054 - 382.658 Dr. John Deloney

So what are you going to do in the off months?

Chapter 5: What should I do if my roommate is moving out?

384.258 - 390.506

I've been door dashing. It's like a delivery app. I actually make pretty surprisingly good money.

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391.868 - 396.494 Dr. John Deloney

I agree with Ken. College isn't for you right now because your head's other places.

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396.634 - 403.943 Ken Coleman

John, I want him to keep learning. I'd like you to go to a couple of entrepreneurial conferences, business conferences. Start reading some books.

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404.163 - 412.053 Dr. John Deloney

Start taking people to coffee who are running small businesses in your area and say, I'm a young gun and I want to learn. They'd love to teach you.

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412.093 - 414.096 Ken Coleman

Trevor, is your dad going to be okay with this?

415.021 - 431.734

He actually owns his own business, and he completely understands, and he didn't know if I was making the right choice either. But every time that I tell him that I'm worried about the cost, he compares it to my sister. He just says that he's more worried about whether it's going to be worth it for her or not, her going to college. That's not helpful.

432.496 - 446.023 Ken Coleman

That's not helpful. So bottom line is, my point is, I just wanted to ask while we got John here if there was going to be tension in letting Dad know this. It doesn't sound like there is. So you know what? This is a good move, my friend. Put it on pause. I would absolutely follow your gut.

446.044 - 456.021 Dr. John Deloney

Whatever loans you've run up, pay off right now. Pay them off. You borrowed that money. You signed your name to it with $40,000 in the bank. As a taxpayer, I don't feel like I have to pay your bill. You've got the money. Go pay it.

456.041 - 456.882 Ken Coleman

Hang on the line, Trevor.

Chapter 6: How can I increase my income in the tech field?

456.902 - 475.193 Ken Coleman

I'm going to give you a copy of my book, The Proximity Principle, which is all about getting around people that are doing what you want to do. So right now, car detailing, that's a thing you do because you like working for yourself. I would suggest you enjoy the output of that. I think making something look orderly, look nice.

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475.233 - 489.477 Ken Coleman

I think there's something artistic there for you, something that feels efficient and excellent. I think that's great. But The Proximity Principle is a book you need to read. And I want you to start hanging out with other entrepreneurs in different fields that you're interested in because you're very young right now.

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489.457 - 510.717 Ken Coleman

And also, hang on, let's also give him a Get Clear Career Assessment, which will give you a detailed report on the uniqueness of you, what you do best, what you love to do, and what motivates you. I'm excited, John, when I hear from young people like this who are, well, they're wired to work for themselves and solve problems. And it's all about figuring out those problems they most want to solve.

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511.298 - 533.647 Ken Coleman

I love that. He is John Deloney. I'm Ken Coleman. This is The Ramsey Show. Don't move. More of your calls coming up. Welcome back, America. You've joined the conversation here on The Ramsey Show. We're talking about your life, specifically your money, your relationships, and your work. I'm Ken Coleman. I'm joined by my colleague, Dr. John Deloney. If you're new to the show, welcome aboard.

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533.707 - 553.68 Ken Coleman

We are going to take your money calls today, but John, as our resident PhD times two, is our relationship... Mental health expert. And I don't have a degree. I just worked hard and got here. And I'm the work expert. And so we're going to take on some of those calls today. And John and I do a fun little event.

Chapter 7: What are the financial implications of having a second child?

553.941 - 567.361 Ken Coleman

I say event. It's a pre-event at our Building Wealth Tour where we just take questions from the crowd. And you wouldn't believe the amount of... synergy between people who are unhappy at work and are dragging that home or unhappy at home and dragging it to work.

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567.401 - 582.406 Ken Coleman

And so if you're in that position today, if you've got a really, really toxic situation at work, it's a rare opportunity to get some of the tactical and then the emotional advice and the mental health advice, John, because this is an exploding issue.

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582.847 - 591.94 Dr. John Deloney

Yeah, or if your marriage is gotten sideways or your kids are home for the summer and you don't know which way is up and that's affecting your work life, give us a call, man. Give us a call. Absolutely.

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592.601 - 609.103 Ken Coleman

To that end, the guys, they shared something with me, John, and I'm just going to breeze through this and we're going to get right to the phones, 888-825-5225. But we were talking during the break and we just took a call in the last segment from a young man who's finished his freshman year and he's asking us, hey, should I continue the degree?

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609.083 - 632.664 Ken Coleman

And so this is an interesting list of 25 high-paying jobs that don't require a four-year degree. And both of us have spent time with Mike Rowe recently. We talk about this stuff all the time, about all the opportunities to work and to do very, very well. And so I'm going to skip through a lot of these. And these are median salaries, all right? So when you hear this, this is not the max.

632.684 - 659.003 Ken Coleman

This is a median, okay? Okay. But when you look at police officers and detectives, one that popped out to me, number eight on the list with a median salary of $66,000. I bring this up because there is a massive need here in this area because we've been through a very volatile season. And you have a very personal connection to this with your father, some of the work you've done.

658.983 - 681.767 Ken Coleman

And I just was curious, as you look at our society today and we see that police officers and detectives are number eight on this list of high-paying jobs that don't require a four-year degree, what's the mindset, what's the health, the mental health that someone would need to survive a very tough job like police officer and detective?

681.787 - 702.362 Dr. John Deloney

You have to be driven by a sense of purpose that is far beyond you. Because... Here's what I know. I know Dave takes care of us very well financially. And nobody, I don't have to put special clothes on every time I leave my house because I might get shot. I also don't have people out protesting in front of my business telling me they hate me and they wish I would go away.

703.243 - 709.129 Dr. John Deloney

They also, I remember being a young kid and my mom told me, you can't be a policeman when you grow up.

Chapter 8: How can I manage debt while expecting a new baby?

709.149 - 724.647 Dr. John Deloney

And I said, why? And she said, because every day your dad goes to work, I hug him as though it's his last, right? So you have to be in this for more. It's embarrassing what we pay police officers. As a taxpayer, it's insulting. That my tax dollars don't go to more police officers.

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724.667 - 726.57 Ken Coleman

To your point, a median salary here of $66,000.

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726.95 - 728.453 Dr. John Deloney

It's insane to me.

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728.713 - 741.994 Ken Coleman

It's insane to me. Right. Versus an elevator installer and repair is number two on this list. Yeah. With a median salary of $97,000. Now, again, what we're pointing out here is high paying jobs that don't require...

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741.974 - 770.479 Ken Coleman

a college degree but in this case there's not a lot of job growth for those type of roles because you got guys that are aging out you know in that role but the police officer detective we need that more than ever in our society that's right fascinating stuff number one on the list and i bring this one up because of what i read about it number one uh job uh on this list and this is again uh a list of 25 jobs that don't require for your degree air traffic controller with a median salary of 129.

770.459 - 779.147 Ken Coleman

$129,000 and all you need is an associate degree. But I have also read multiple studies about how high stress that is.

779.307 - 782.89 Dr. John Deloney

I've heard it's the number one. That's the last I've read, but that's been years since I've read that.

783.01 - 800.466 Ken Coleman

And I bring that up. So I bring that up specifically because you're here with me today. All right. So whether it's air traffic control or not, let's take a job that by the nature of it. So we're not even talking culture. We're not talking your leader or coworkers that could lead to stress at work and mental health strain. We're talking just

800.446 - 815.645 Ken Coleman

you are on it because you've got multiple gigantic flying cans of tin with lots of people on them that could explode with one thing. So the level of focus and pressure is the number one thing.

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