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The Ramsey Show

Preparing for the Worst While Walking the Baby Steps (Hour 3)

12 Jun 2023

Transcription

Transcript generated automatically by AI and may contain errors.

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

27.52 - 49.459 Dave Ramsey

Live from the headquarters of Ramsey Solutions, broadcasting from the Pods Moving and Storage Studios. It's the Ramsey Show, where we help people build wealth, do work. that they love, and create actual amazing relationships. Open phones here. Dr. John Deloney, Ramsey Personality, is my co-host.

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Chapter 2: Should I accept financial help from my parents for vehicle repairs?

49.479 - 60.773 Dave Ramsey

It's a free call at 888-825-5225. Clayton is with us in San Diego to start off this hour. Hi, Clayton. Welcome to The Ramsey Show.

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61.594 - 63.277

Hey, guys. Thanks for taking my call. Sure.

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63.317 - 63.657 Dave Ramsey

What's up?

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65.099 - 95.614

So my question today is, is it a smart decision to accept my parents' help to pay off my debt? To give a little backstory, I'm 27 years old, making $85,000 a year. I currently have $30,000 of debt, 25 of that is in credit cards, and five of that is a car note. I just recently had to put in $10,000 of repairs into my car, and my parents are offering to help pay for half of that.

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95.999 - 110.261

Um, and I just recently kind of stumbled onto your guys' show and, uh, binge watched it on YouTube. And I have, uh, heard that that might not be the best idea going forward. Uh, so just wondering how to figure out how to, uh.

111.423 - 116.15 Dave Ramsey

So your mom and dad are offering you $5,000 in assistance as you start walking out of debt.

116.931 - 117.192

Yes.

118.053 - 119.475 Dave Ramsey

What strings are attached?

120.232 - 130.107

Well, nothing. I mean, they're a great support system. I haven't relied on them for any bills or anything like that for probably 10 years now.

Chapter 3: How can I manage my finances while battling cancer?

219.93 - 240.508 Dr. John Deloney

So something is stirring in your soul. My guess is you went down a rabbit hole, watched all these videos of the Ramsey Show. You're looking at your financial position. You make $85,000 as a 27-year-old, which means you're crushing it, and you can't breathe. And the more you listen to this show, the more your heart's beating a little bit faster and a little bit faster and a little bit faster.

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240.528 - 251.605 Dr. John Deloney

Is that fair? That is absolutely fair. And then your control alt delete doesn't work on your rolling girder or whatever you got in your car there. And now you're in a mess.

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252.486 - 256.051 Dave Ramsey

So the car, has the car been fixed now? Already been fixed?

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256.552 - 273.984

The car has been fixed. So I did use, this was before I realized this was an absolute no-no, but I did use debt to pay for the repairs on the car. So I put it on a credit card, which that, adds into the $25,000. I got you. Yeah.

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274.144 - 277.533 Dave Ramsey

And what is this? What's the Toyota battery worth? The car, I mean. What's it worth?

278.094 - 280.159

No, it's not. It was an Audi.

280.279 - 280.881 Dave Ramsey

Audi, I'm sure.

281.142 - 290.915

Like a belly button. It's about $13,500. So we're getting about 13,000. I have it on, you know, the different sites for about 14.

291.236 - 305.674 Dave Ramsey

So what is bothering you about your parents offering you no strings attached? They have a good relationship with you. You've been living on your own, not with any help at all. There's no pattern of subsidy. What's bothering you about $5,000 worth of help?

Chapter 4: Is contributing to an HSA while paying off debt a good strategy?

419.388 - 429.958 Dave Ramsey

They make really good money. They stand on their own. They've done great on their wealth building. And, you know, as part of my estate planning, I may just dump some money over there, but it has nothing to do with

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429.938 - 454.883 Dave Ramsey

them uh you know it has nothing i'm not doing that but i mean it could but i'm just saying it has nothing to do with me controlling them it has nothing to do with them being needy and a parasite living in their mother's basement playing video games that's not what we're doing you're a stand-up citizen making 85k in san diego california you're not rich but you have a plan and now you've got a new nuanced plan that gives you some traction i'm proud of you

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454.863 - 471.011 Dr. John Deloney

Let this be the fire that engages this system so that the next time, and there will be a next time, when a car falls apart on you, that you don't have to call mom and dad, that you've paid off this debt, you're staying on your own two feet, and the $85,000 goes to you.

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471.031 - 473.175 Dave Ramsey

I don't even think you called them. They called you.

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474.404 - 477.067

Yeah, I was just kind of, you know.

477.548 - 492.327 Dave Ramsey

You were whining about it, and they said, hey, we'll help. Yeah. That's fair. So, you know, maybe passive-aggressive calling. He didn't call and beg for money. Yeah, so that's cool. Clayton, I like you. I think you're a good guy. I think you're heading the right way, man.

492.548 - 495.872 Dr. John Deloney

Yeah, accept the gift and let this be a never-again moment.

495.852 - 511.971 Dave Ramsey

Yeah. I'm going to give you another gift. So accept this one. We want to put you through Financial Peace University and accelerate this process. So mom and dad will throw a little gas on your fire. We'll throw some on your fire. We want you to go through the program the whole nine weeks. If you promise to go through it, we'll give it to you free. Hang on. Austin will pick up.

519.055 - 536.22 Dave Ramsey

Dr. John Deloney, Ramsey Personality, is my co-host today. Our team's been doing research on mental health in the workplace. It's not looking good out there, guys. Employees say the last month they felt stressed, burned out, overwhelmed, even angry at work. And if you're a business or HR leader, you may be seeing this firsthand.

Chapter 5: What should I do with a large inheritance?

627.983 - 652.077 Dr. John Delony

And really my question is just, so I intend to beat this diagnosis. However, I do want to live with the brutal facts and just want to know if there's anything I should change or adjust about the plan that we have laid out to take into account that I may evaporate from being the financial provider for my family in a decade.

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653.258 - 656.081 Dave Ramsey

Wow, man. How long ago was the diagnosis?

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657.202 - 658.443 Dr. John Delony

About a year. About a year ago.

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659.845 - 674.736 Dave Ramsey

Man, you process this and... You know, the tone of your voice and the way you present the story just is incredible courage. You sound so strong. I mean, I'm about to cry, but you sound so strong.

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675.498 - 677.262 Dr. John Deloney

Jared, have you gone robot mode?

678.085 - 699.657 Dr. John Delony

No, no. So when I first got this diagnosis, it was a lemon-sized tumor in my brain, and they told me I had six months to live. I was lucky that my tumor is about as weird as I am. And because of that, they found out, no, you don't have six months. The structure of the genes in this tumor mean that you've got about 10 to 15 years, not six months.

699.697 - 713.82 Dr. John Delony

And so I sat in that first diagnosis for about a month before they got the testing back. And that gives you a lot of time to kind of process. Yeah, so you've got like a 10-year gift is the way you've been looking at it. Yeah, exactly.

713.84 - 714.421 Dr. John Deloney

Good for you, man.

714.461 - 724.275 Dr. John Delony

How old are your kids? I've got a 3-year-old and a 1-year-old. He was actually born the same month of my surgery, my craniotomy.

Chapter 6: How do I tackle $56,000 in debt as a single mom?

932.729 - 958.102 Dave Ramsey

whether you're here 10 years or whether you're here 40 years. So it's the best one I got, and I would just keep working it exactly that way. You may have a different level of intensity, and you may have a different level going to enjoyment, enjoying some moments here and there of money that other people might not, but none of that's bad. That's all part of the ride and the thing that you're on.

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958.462 - 959.884 Dave Ramsey

John, what am I missing?

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959.864 - 971.116 Dr. John Deloney

I think just making it tactile. When Dave talks about relationships, I want you to get two or three men that will commit to having coffee or breakfast or whatever with you for the next 10 years.

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972.097 - 987.272 Dr. John Deloney

Y'all are going to be my gang, and those are going to be the guys that you text on those random nights that you can't sleep and you're spinning at 3 a.m., and those are the guys that are going to show up and make sure if you have a bad day, they're going to be those guys that show up. But

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987.252 - 1002.355 Dr. John Deloney

You're going to want to spend every spare second doing these things that you quote unquote think you need to do. And one of the things that's going to be a great gift to your kids is seeing their old man have friends, seeing their dad have friends, seeing their dad have commitments. Because let's play this out.

1002.375 - 1025.931 Dr. John Deloney

Let's say worst case scenario, you got 10 years, then you got a 13 year old and 11 year old. who got a ringside seat of watching dad be courageous, be brave, and have friends and invite men over into his life. So that's relationships, making sure you and your wife are together. And this comes from Brene Brown. I just think the way she says it is so poignant. Be weary of dress rehearsing tragedy.

1026.894 - 1033.31 Dr. John Deloney

You think you can plan for the back end of this and the emotional back end of this? You can't.

1034.513 - 1039.365 Dave Ramsey

You can't, right? You can't rehearse it, but you can prepare by laying foundations.

1039.345 - 1050.037 Dr. John Deloney

That's right. So what Dave said about financial, about relationship, all that is exactly right. And then go live your best life with those kids. Man.

Chapter 7: What are the implications of using debt to pay for car repairs?

1193.221 - 1195.264 Dave Ramsey

So they're at the top of the debt snowball right now.

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1196.045 - 1197.227

Yeah, they're one of the top ones.

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1197.247 - 1216.176 Dave Ramsey

Yeah, chunk as much as you can put in there and run it back through that account because it's just a method of paying. So in other words, if you put $1,000 in there, you do not pay taxes on that $1,000, and you use that tax-free money to pay your medical bill with. That saves you about $250 per thousand.

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1218.085 - 1229.53 Dave Ramsey

in taxes so you're because you're running it through there but all we're doing is using this as a method of clearing the debt snowball okay not as a method of building up savings

1230.37 - 1231.591

Awesome. I appreciate your time.

1231.832 - 1234.574 Dave Ramsey

So well done. Good move. Excellent. Excellent.

1234.594 - 1258.099 Dave Ramsey

I'll tell you another place that applies, folks, out there is if you've got a chronic situation where there's ongoing allergies, there's ongoing Crohn's disease, there's ongoing whatever, where you've got these constant medical bills that are part of your budget, then run those through your HSA if you've got an HSA because you can pay medical bills out of HSA tax-free.

1258.079 - 1276.504 Dave Ramsey

And so, you know, you are going to dump money in there. But if you're just using your HSA like I have, George W. put this in place back in the day. And that's when it came into being was under the George W. Bush administration. I started putting as much money as was allowed into an HSA at that point.

Chapter 8: How can I prepare my family financially for potential health issues?

1411.559 - 1429.583 Dave Ramsey

It's a federal issue as to whether you'd be taxed. So I don't think you're taxed at all. I think I agree with your accountant, but your accountant's probably smarter than I am on this subject. So I'll go with him. So no taxes have to be withheld. So you're going to clear 175. Wow, what a story. And you're thinking about buying a house.

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1430.164 - 1432.587 Dave Ramsey

How much of a house are we going to buy in Ventura, California?

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1433.326 - 1439.334

Well, we're actually more like outside of L.A. My wife and I have about $100,000 already saved up in cash.

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1439.774 - 1441.997 Dave Ramsey

So you've got $275,000. How much are you going to spend on a house?

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1443.539 - 1453.231

Probably, I don't know, for our first property, $600,000 to $700,000, like a condo or something, because homes are like $850,000, and that will put us over the 15-year fixed that you recommend.

1453.432 - 1454.473 Dave Ramsey

What's your household income?

1455.28 - 1456.263

About 220,000.

1456.965 - 1464.71 Dave Ramsey

Well, I'm going to make sure I have an emergency fund in place and no debt. Do you already have that, not counting this?

1465.693 - 1466.937

Yeah, we're totally debt-free.

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