Should I Invest Extra Money or Keep It in Savings? (Hour 1)

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The Ramsey Show 39 min 5 speakers 8 chapters transcribed 3 months ago
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Why shouldn't I borrow money from family?

George Campbell 0:30
Live from the headquarters of Ramsey Solutions, broadcasting from the Pod's moving and storage studio, it's The Ramsey Show, where America hangs out to have a conversation about your life and your money. I'm Ramsey personality, George Campbell, joined this hour by Dr. John Deloney. That's right. He is a doctor, ladies and gentlemen. Two PhDs. Not really. Best-selling author. Not really. Host of The Dr. John Deloney Show. What do you mean, not really, John? They weren't honorary. I can't.
Dr. John Deloney 0:56
heal anybody I went to a lot of grad school classes I'm the guy that walked the marathon I get to put the sticker on my car that says 26 point whatever like I walk I finished I didn't win the marathon that's a good point but there is a it's funny that people go well you're not a real doctor but you can have a doctorate and be a doctor and not be a medical doctor correct correct people need to understand that but there's also people who have like doctorates in totally unrelated things that like anyway
George Campbell 1:24
I tend to ask you about my health symptoms, though, frequently.
Dr. John Deloney 1:27
And I answer, which I shouldn't be doing.

How can I help my daughter and her future husband financially?

Dr. John Deloney 1:29
You answer with confidence. I shouldn't be doing that.
George Campbell 1:31
I love it. Well, John, I thought it would be fun while we wait on the phones to start ringing. 888-825-5225 is the number to call, by the way. That's 888-825-5225. You jump in. We want to talk about your money, your mental health, your relationships. boundaries, whatever goals you have, whatever crossroads you're facing, we want to step in and help you take the right next step. So 888-825-5225 is the number to call and we'll get you on the phones here. So I want to start, John, with our question of the day, which comes from Fernando in Arizona. What does Fernando have to say?
Dr. John Deloney 2:08
All right. Fernando asks, what... I should do to get out of my dad's house and out of debt while looking to get married.

Should I invest extra money in an IRA or keep it in savings?

Dr. John Deloney 2:17
Fernando, you got a lot going on, man. I'm a manager for a financial institution call center making $68,000 before taxes and have 9,000 bucks in my 401. I still live at my dad's house and I pay the utility bills. I'm looking to move out of my dad's house, but Arizona home prices are still high. I have over $20,000 in debt spread between credit cards, past due taxes set up on a payment plan and 401k loans. I believe my dad would Taking up 401k loans. I believe my dad may be able to lend me money to knock out some credit card debt that would help a lot since I'm paying over 25% APR rate. However, I've never asked him for anything since I was 14 years old. I guess except for a place to live and rent. I'm not sure if I should ask my dad for money or how to ask him if I do.
Dr. John Deloney 3:12
Oh, Fernando.
George Campbell 3:13
Oh, Fernando. We have no clue how old Fernando is. I don't think he mentioned that.

What strategies can I use to convince my husband to pay off debt?

George Campbell 3:18
He could be 50. He could be 20. That's right. No clue. We're going to guess he's closer to 20.
Dr. John Deloney 3:23
Let's just for the sake of this, let's just pretend he's 25. All right. Okay, 25. So he's got a job making 68, making 70 grand at a financial call institution and he wants to move out. Okay. So he makes enough money right now that he could go get an apartment and get his call center job and deliver for Amazon in the morning or deliver for whatever and start working multiple jobs to get this stupid debt paid off. He could make a really clear plan with his old man and say, I'm going to live here for three more months. I'm just going to pay the utility bills. I'm going to spend no dollars, and I'm going to start wiping this debt out as quick as I can. He can come up with a plan like that.

What is the best way to treat an emergency fund?

Dr. John Deloney 4:07
But it sounds like he's trying to do everything all at the same time. He wants to... Not live at dad's house, but not have some debt, but also- Trying to invest. Buy a house. I got some investments, but I had to take some loans out against my investments. He just got too much going on at the same time, right?
George Campbell 4:22
Yeah, that's a classic case for most people. They don't know why they're not making progress. They're frustrated and they lay out all the details on paper and you're like, well, you could stop doing that and that and that and that and focus on one thing with intensity, which is getting out of debt.

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