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The Ramsey Show

You Can’t Help Others While You’re Drowning Yourself (Hour 2)

13 Jun 2023

Transcription

Transcript generated automatically by AI and may contain errors.

Chapter 1: Should we pay cash to build a house or invest that money?

27.487 - 58.135 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 at 888-825-5225. Thank you for joining us, America. Jade Walsh, our Ramsey personality, is my co-host today. Thank you for being here, America.

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58.155 - 64.102 Dave Ramsey

888-825-5225. Craig's in Nashville. Hi, Craig. Welcome to The Ramsey Show.

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65.143 - 66.064 John Delony

Hey, thanks for having me.

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66.084 - 66.825 Dave Ramsey

Sure. What's up?

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67.497 - 73.983 John Delony

So I am soon to be married to my fiance, and we are both young. I'm 21.

Chapter 2: What should I do if I need to pause baby steps for a funeral?

74.544 - 111.205 John Delony

She's 23. We both have well-established jobs. I make roughly $30 an hour now. I'm expected to go to $35 in the next year. She makes $27, and, of course, she can go higher in the next few years. We're both very early in our careers. And my fiance is – she has – Over $250,000 in liquid cash. She has $10,000 in debt. I have roughly 60. I've bought seven acres that I still have 60 on.

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111.986 - 122.181 John Delony

I guess we do plan on building a house. I guess what I'm wondering is, can we spend that money on the house and basically live mortgage-free, or should we invest that money in something else?

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123.382 - 126.647 Dave Ramsey

Wow. Or she'd get $250,000 in cash at 21 years old.

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Chapter 3: Is it okay to give money to a friend in need while in debt?

127.505 - 144.664 John Delony

Well, her father died when she was 10, and her parents were divorced at the time, so she was the sole heir. So everything that he owned did go to her. Of course, she couldn't take the rest of it until she turned 18, and she has recently sold the property, and she has this money.

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145.044 - 146.987 Dave Ramsey

What do you do for a living?

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147.007 - 148.468 John Delony

I'm an electrician in Nashville.

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148.669 - 150.21 Dave Ramsey

What does she do?

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150.23 - 153.194 John Delony

She is a dental assistant with extended functions.

153.494 - 153.974 Dave Ramsey

Phenomenal.

154.515 - 155.436 Jade Warshaw

When did you guys get married?

156.26 - 157.662 Dave Ramsey

October of next year.

159.224 - 160.005 Jade Warshaw

Next year? 2024?

Chapter 4: How can I focus on increasing income instead of just paying off debt?

166.895 - 187.211 John Delony

I mean, she's always dreamed of the biggest, you know, princess, over-the-top wedding. Not that we'll spend a ridiculous amount of money on a wedding. It's just, especially booking venues nowadays. I mean, you're a year out from, you call it a day, you're at least a year out from today for a lot of places. Who's paying? Her parents will front the majority of the money.

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187.452 - 193.268 John Delony

Not that we won't lean on some of her money, but we don't plan on paying for the wedding ourselves.

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193.588 - 196.797 Dave Ramsey

And the budget out of your pocket will be about what, do you think?

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197.468 - 202.395 John Delony

I don't imagine it being over $5,000 to $10,000.

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202.716 - 205.6 Dave Ramsey

Have you had this discussion with her?

205.62 - 206.061 John Delony

With her?

206.241 - 209.807 Dave Ramsey

I don't really care what you imagine. I was asking what the real budget is.

209.907 - 215.495 Jade Warshaw

Well, I mean, if her parents are paying, you need to sit down with her parents.

215.515 - 216.216 Dave Ramsey

Them and her and you.

Chapter 5: What budgeting tips are there for expecting parents?

216.256 - 222.666 Dave Ramsey

Yes. Because that enters into the discussion of this $250,000. I mean, if you're going to spend $100,000 on a wedding, you need to know that. Mm-hmm.

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222.646 - 224.568 John Delony

Yeah, absolutely not.

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226.049 - 236.678 Dave Ramsey

Well, I heard what you said. I also heard that the super princess wants 18 months to plan a wedding that's off the chart. And you don't get those for 10K.

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237.819 - 238.159 Jade Warshaw

Yeah.

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238.559 - 242.243 Dave Ramsey

So I don't know what we're doing. But you guys need to know what you're doing.

242.263 - 252.231 Jade Warshaw

You do. Now, in the meantime, if you're over a year out from this, can you get your debt cleaned up in that time or a good portion of it?

252.717 - 256.943 John Delony

I think I could probably get 10 of mine cleaned up. 10?

Chapter 6: How do I navigate a divorce if I can't afford it?

258.625 - 265.114 John Delony

Yes. Part of that 60, I have roughly 10 in just miscellaneous personal loans.

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265.234 - 267.538 Matt Damon

I got a boat loan and I got a car loan.

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268.319 - 270.322 John Delony

Both of them are under $5,000.

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271.283 - 280.215 Jade Warshaw

Yeah, but why do you feel like over the course of a year and a half, you'll only pay off $10,000? Making $30 an hour?

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281.077 - 284.286 John Delony

Yeah. Yeah. Let's show you. I could do better.

284.586 - 285.227 Jade Warshaw

I think you can.

285.367 - 286.188 Dave Ramsey

Yeah, that's pretty wimpy.

286.668 - 297.88 Jade Warshaw

I think you can. I mean, you're making $30. Look, if it were me, if I were you, my goal would be I am going to do whatever it takes to clear the majority of this debt in the next year and a half.

Chapter 7: What are the financial implications of building a house early in marriage?

299.041 - 308.191 Jade Warshaw

Yeah. Working extra, picking up extra hours, doing whatever I have to do to clear that out. Then you can kind of come in. She's got the money to clear out her debt. And then you guys can come in.

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308.231 - 309.032 Dave Ramsey

You live in an apartment?

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310.133 - 311.935 John Delony

No, sir. We both live with our parents still.

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312.269 - 333.552 Dave Ramsey

Okay. So my suggestion would be you both become debt-free, you have a wedding budget that is under control, and then you begin to think about and dream about building a house for cash on this property. Okay? Yes. I would do that. I would not break ground on the new house before your one-year anniversary. Okay.

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Chapter 8: How can I manage my finances during life changes like marriage and children?

334.645 - 340.496 Dave Ramsey

That would be the soonest, which means after you get married, you're going to rent an apartment for a year or something for a year.

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340.876 - 341.057 Bruno Satin

Yeah.

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341.478 - 370.198 Dave Ramsey

Okay. Because it takes a year of marriage to know how close to your mother-in-law to build. And honestly, you guys, building a house is stressful for people that have done it before. Building a house is stressful for people that are old and experienced. Building a house is stressful for people that have been married for 10 years and really know each other. You got one year of marriage, you're 21.

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370.258 - 386.569 Dave Ramsey

At that point, you're 22 and 24. And now you're drawing a house. You're getting the architect's work done. You're coming into agreement on all of that. You're asking for a real tough project. because everything is so new in your life.

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387.331 - 396.074 Jade Warshaw

So- Well, let me ask you a question, Dave. Would you suggest for a person's first time home buy, would you suggest it to be a first time build?

396.355 - 396.816 Dave Ramsey

No.

397.319 - 406.832 Jade Warshaw

I feel like I wouldn't. I'd want to get it. I know you're going to rent for a little while, but I feel like starting out home ownership with a new build just feels.

407.172 - 431.993 Dave Ramsey

It's very hard. It's very hard. You're asking for trouble. And so, yeah, I would not recommend it. If you're going to do it, wait at least a year because you're going to face some relationship trials as you go through this. It's 100%. Sharon and I have been married 41 years. We have built three houses together. We've gone broke and built a business that brings in $300 million a year.

432.615 - 452.808 Dave Ramsey

And we've done all of that, and we're in the middle of building a house right now. And we have to be very careful about how we talk to each other. I just heard something in my head. I don't want to. It's a hillbilly fight when you have a discussion over the stove or you have a discussion over the roof color.

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