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The Ramsey Show

This Is the Fastest Way To Pay Off Debt (Hour 3)

05 Jun 2023

Transcription

Transcript generated automatically by AI and may contain errors.

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

30.575 - 48.178 Dave Ramsey

Live from the headquarters of Ramsey Solutions, broadcasting from the pods moving in storage studios, it's the Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships.

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48.597 - 73.887 Dave Ramsey

Open phones this hour, George Camel, Ramsey personality, co-host of Smart Money Happy Hour with the one and only Rachel Cruz on the Ramsey Networks and the new George Camel YouTube channel. My favorite part is the snark. You don't want to miss it. Check them all out. The phone number here is 888-825-5225. Daniela is with us in Albuquerque, New Mexico. Hi, Daniela.

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Chapter 2: How can I find a house without an HOA?

73.907 - 74.287 Dave Ramsey

How are you?

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75.389 - 77.191 Shayna Goldman

Hi, good. Great to be here.

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77.211 - 78.132 Dave Ramsey

Cool. How can we help?

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79.293 - 102.853 Shayna Goldman

I'm currently house hunting, but I do not want an HOA because I want backyard chicken. However, in my price range, I can't really find anything that I like. I want to put 20% down, but I just want to know if I'm being too picky and how do I know if I have unrealistic expectations?

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105.145 - 127.882 Dave Ramsey

Well, first thing that comes to mind is with an HOA, there's a bunch of clucks, but that doesn't matter. I knew there was a pun in here. Yeah, there had to be something in here. I'm with you. I'm not a fan of HOAs, although I am in a few of them. Lord Jesus, pray for me. Help me. And yeah, I don't blame you. I'm not sure I want to buy a house based on chickens.

129.564 - 131.828 Dave Ramsey

What's the heart behind the chicken ownership thing?

133.293 - 141.514 Shayna Goldman

Well, most of it is, yes, I don't want an HOA, and also I just want chickens to have their own eggs.

141.899 - 163.907 Dave Ramsey

eventually you know many homestead sort of thing yeah so you actually what you're looking for you're actually looking for a small piece of ground and not in a neighborhood more than the hoa issue because i mean you're not going to homestead and have uh multiple farm animals in a suburban situation even if there is no hoa they have stuff called codes usually

164.984 - 169.554 Shayna Goldman

Possibly. I just know that New Mexico is pretty lenient on that.

Chapter 3: What should I consider when paying off my debt?

273.752 - 293.391 Dave Ramsey

So, yeah, that's what ends up happening. So, yeah, I think I'd give this a run as a renter. for a year and let's experiment and see if we do want to live out a little bit and have a little bit of acreage and as a 26-year-old young lady be running some farm animals around. That might end up not being as fun and romantic as it sounds like.

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293.812 - 306.484 George Campbell

Yeah. And I would be working with a good real estate pro as well in your area who can find these pieces. And I mean, your options are going to be more limited. And so you've got to be okay with the consequences of that choice of going, I want a little piece of land and here's what I want on it.

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306.464 - 328.199 Dave Ramsey

Yeah, but I do think you're probably going to be outside of suburbia. You're probably going to be just outside of town, so to speak. And you can do that. And Albuquerque, that might not be a bad thing. Yeah. You know, it might not be a bad thing. Albuquerque's a great little town. But there's some pretty areas out there, particularly over towards Taos and all that.

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328.32 - 329.822 Dave Ramsey

It's beautiful over towards the mountains.

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329.802 - 355.152 Dave Ramsey

so uh it starts to get expensive over there too by the way but yeah yeah so just um but but anytime you've got activities other than just normal shelter involved in your housing like farm or whatever then let let's i always suggest giving her a little rent and give her a little try well our pal christy's story was she got fed up with it in about two years yeah if i recall

355.132 - 364.826 George Campbell

Well, and Dr. John Deloney had some chickens, and he just told me there was some kind of rat infestation. They had to get rid of the chickens. That was just the other day. Yeah. His dream of chicken ownership is gone, too.

365.167 - 372.617 Dave Ramsey

Well, that's not a credible source, though. John Deloney? John and chickens. That's not credible.

372.677 - 374.44 George Campbell

I take all of his stories with a grain of salt.

374.42 - 398.531 Dave Ramsey

I think, well, yeah, rat infest. Yeah. Who gets that? Deloney. I didn't know that was a thing. But yeah, Christie's was, I think hers was valid. I mean, she just ran farm animals and got tired of it and then decided I wanted to be like in the city again. And so I think she was glad she didn't own it. Yes. This is the end of the story. So if I recall, I remember hearing the story a few times.

Chapter 4: Is it wise to get another mortgage?

486.909 - 487.91 Dave Ramsey

Okay. How long you had this car?

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489.652 - 492.013

About... Just over a year.

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492.275 - 495.838 George Campbell

Did you roll negative equity into it? I did.

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495.953 - 515.821 Dave Ramsey

Yeah, okay. That's not a way you get that far in that fast. Okay. Yeah. So you already had the... I would get a personal loan at the credit union for $10,000, and I would sell this puppy and get you a hoopty. That's a good start because you got a $750, $800 car payment, and you make $50,000 a year. This is no fun. This is not the definition of fun.

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516.422 - 541.684 Dave Ramsey

I want you to get your life back, man, and drive like no one else so later you can drive like no one else. Let's get you where you're not broke anymore and then get you a good car. That's how I would do it. This is The Ramsey Show. Well, we just finished the best Entree Leadership Summit week we have ever done last week. It was off the chain.

542.805 - 560.71 Dave Ramsey

And the weird thing is I can honestly say the only one better is going to be next year's, and it's going to be. I am absolutely thrilled to announce, and a large number of these tickets are already sold, and I think the hotel that we're going to is already sold out. but I'm going to go ahead and announce this anyway.

560.79 - 580.062 Dave Ramsey

Entree Leadership Summit, which is possibly the premier leadership conference in America today. We happen to do it, but it's so good that if I wasn't doing it, I would go as an attendee. It's amazing. It's really, really good. If you're a business leader, investing in your own growth is something you do. Our friend John Maxwell says leadership is the

580.042 - 606.249 Dave Ramsey

Leadership ability is the lid that determines a person's level of effectiveness. You've got to invest in yourself if you want to grow in leadership. And the premier conference next year, Entree Leadership, you're going to be challenged. Listen to this. Top minds. James Clear of Atomic Habits. Craig Groeschel of Life.Church. Mike Rowe of Deadliest Catch and Dirty Jobs. Carrie Lawrence.

606.329 - 630.311 Dave Ramsey

Carrie was the first female fighter pilot in American history. And she is a motivational machine. She's something else. And I'm going to speak to Dave Ramsey. Dr. John Deloney, Ken Coleman. Next year's summit will be our 10th year anniversary. We're taking over the Gaylord Texan in Dallas to celebrate. If you want to grow and you want to be there, you need to go right now.

Chapter 5: How can I financially prepare for medical school?

664.602 - 667.004

I'm great. Thank you so much for taking my call. David Jordan.

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667.345 - 669.467 Dave Ramsey

Sure. What's up?

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669.487 - 693.951

So my question is we're in baby step seven and I was wondering if it's okay or if it's violating the principles to get, go back into debt for a mortgage to get a bigger house. So the situation is, um, I've started working again. Our household income went up $70,000. So we're at about $200,000 annual income. We have a net worth of about $800,000.

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694.319 - 704.951

And our primary residence, our only residence, is worth $350,000 about, and we have over our emergency fund about $100,000 in savings.

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705.631 - 707.514 Dave Ramsey

And you want to move from $350,000 to what?

709.075 - 721.609

To about $750,000 or $800,000. And our current house is like 1,300 square feet plus 1,100 square feet finished basement, and we have five kids.

725.487 - 743.894 Dave Ramsey

Well, there's not a principle in the Ramsey process or baby steps that prevents you from doing that as long as the payments no more than a fourth of your take-home pay on a 15-year fixed. Right. I got to share with you the truth. I mean, you make $200,000 a year.

744.094 - 744.354 Bruno Satin

Sure.

744.374 - 752.827 Dave Ramsey

You have $100,000 saved. You have $350,000, so that's $450,000. $550,000, $650,000, $750,000. You can do this in three years if you just save it.

Chapter 6: What should I do if my spouse and I disagree about credit cards?

985.413 - 1001.481 Dave Ramsey

that are your shortest, best route to a great life of wealth and prosperity. We want you to be there, and we want you to stay there when you get there. So I don't know. But, yeah, technically, we don't tell people.

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1002.018 - 1005.762 George Campbell

If you wanted to go upgrade the house and take on a 15 year old. People do it all the time.

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1005.862 - 1016.153 Dave Ramsey

They do it all the time. And then they turn around. But I got to tell you, you're probably going to hate it so much. You're probably going to go bananas and pay it off really, really fast because it's probably going to drive you.

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1016.593 - 1022.879 George Campbell

But again, if you stay there with five kids, you're going to want to save up really fast to go. We got to upgrade this thing. So either way, it's going to happen.

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1023.1 - 1043.072 Dave Ramsey

Yeah, I think that's the way we do it. And either what happens is we either get increasingly motivated and cut deeper and deeper and deeper and deeper to get the thing sooner or or to get to that goal center, or we get decreasingly motivated and we realize we didn't want it, and we abandon the goal, one of the two.

1043.533 - 1056.088 Dave Ramsey

The last time we did this that I can remember where we cut at the Ramsey Place really, really, really deep was about, gosh, I'm trying to think. It was probably 15 years ago when we bought what is Financial Peace Plaza.

1056.068 - 1057.41 George Campbell

Oh, yeah, our old headquarters.

1057.43 - 1063.158 Dave Ramsey

Our old headquarters. And I bought that building for $5 million, and it was the first time I had bought something that expensive.

1063.579 - 1064.82 George Campbell

And there was a timeline to that, right?

Chapter 7: How can I effectively manage my finances as a student?

1198.867 - 1202.593 Dave Ramsey

Okay. That's why I asked. And how much do you have left in your undergrad?

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1204.095 - 1209.763 Shayna Goldman

I have one semester left. I'll be graduating next fall.

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1210.364 - 1212.086 Dave Ramsey

So you'll graduate this Christmas, right?

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1213.348 - 1213.869 Shayna Goldman

Yes.

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1213.889 - 1216.513 Dave Ramsey

Or you're going this summer and you're graduating in September. What are you saying?

1218.295 - 1218.696 Shayna Goldman

I'm sorry? Okay.

1218.878 - 1222.325 Dave Ramsey

You're going to graduate this coming September or this coming December?

1223.628 - 1224.149 Shayna Goldman

December.

1224.39 - 1232.567 Dave Ramsey

Okay. All right. So about six months from now, you're going to be done. And that's 2024. And then 2025 is med school. What's the gap?

Chapter 8: What strategies can help me pay off my student loans?

1328.356 - 1334.768 Dave Ramsey

Yeah, it's a much better attitude, a much better approach. That's going to save you $150,000 or $200,000, your attitude will.

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1334.788 - 1335.69 Shayna Goldman

Yes, I'm hoping so.

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1335.67 - 1355.667 Dave Ramsey

No, it will. It will. Because you're not going to do it if you don't. And so we're going to pile up a pile of money. We're going to clear the 40 grand during the gap year. We're going to apply until we get into a place that is the least possible expensive to get a medical degree. Which, by the way, that doesn't hurt you. I've been to a lot of doctors in my life.

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1355.787 - 1360.755 Dave Ramsey

I have never once asked one where they went to med school. Never once.

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1360.775 - 1368.393 Shayna Goldman

That's something that has been making me a little nervous of these top-notch schools that people kind of say, oh, so here you have better resources.

1368.413 - 1381.858 George Campbell

Yeah, maybe. That's mostly just marketing. I can't even read the font on the frame in my doctor's office. Okay, let alone figure out where he went. He just has good bedside manner, and I trust him. Yeah, it depends.

1381.878 - 1402.226 Dave Ramsey

I mean, obviously, if you're going to do research in some kind of muckety-muck situation where you go to school, it might matter. But if you're going to practice medicine, no one asks the nurse, no one asks the lab tech, no one asks the anesthesiologist right before they stick in the needle where they trained. They just go, are you going to kill me or are you going to heal me?

1402.646 - 1424.723 Dave Ramsey

That's all we want to know, right? And so all joking aside, that's the most overstated bunch of garbage in the world, where you went to law school or where you went to med school. Sorry, boys and girls, but there's life. And now, so you're going to go where you can afford to go the most. Now, so at a minimum, you have limited your student loans to almost nothing. The second thing,

1424.703 - 1442.982 Dave Ramsey

The second component of that I think is already built into your plan after talking to you because you're wise beyond your years is that a whole lot of people, when they're doing graduate work, feel like there's no reason not to borrow the money because they're going to make a lot of money later.

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