You Have to Know Where You Are Financially to Know Where You're Going
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How can the Baby Steps guide my financial journey?
This is The Ramsey Show, where we help you win in your life, specifically with your money, in your profession, and in your relationships. Alongside the incomparable, the delightful George Camel, I'm Ken Coleman. Excited to be with you all. George, you ready to go today? It's a Friday. You're not mailing it in. No. I don't even know how to do that. I'm a millennial. Come on. I don't mail anything. There you go. That's a very good point. You don't even know what a stamp is. I'll explain that to him during the commercial break, but we're here for you, America. 888-825-5225. 888-825-5225. Now, we're going to coach you on saving your money, investing your money, making more money. That's what George and I do together, and I warn you ahead of time, we have fun.
uh this is serious stuff but we also have fun while we're doing gotta bring some levity to it yeah or else we get bored and uh we don't want that by the way great looking studio audience today here uh on the other side of the glass so we'd love to see you sometime if you want to come join and watch the show live we'd love to see you all right let's get started 888-825-5225 again is the phone number rob starts us off in hartford connecticut bob oh excuse me rob uh how can we help today
Hi, George. Hi, Ken. Thanks for taking my call. Sure. What's up? So I got married about six months ago, and I'm trying to dig us out of this ginormous hole of our prior divorces, some poor decisions, and a severe case of can't-say-no-to-wife-itis.
Hold on a second. Hold on. What was that? A severe case of what? Can't-say-no-to-wife-itis. Ha! Wow. I liked it. I thought that deserved, you ran through that too quick. Can't say no to wife-itis. Yeah. I've got a similar case. It's called can't say no to daughter-itis. My 16-year-old's got me wrapped around her finger. I really struggle. I don't think insurance covers those. Sorry, guys.
Should I consider a HELOC to manage high-interest debt?
It doesn't.
Yeah. No, unfortunately.
It's a pre-existing condition.
So, but yeah, so long story short, We're probably about 250K in the hole right now, not including the house. Part of that is, like I said, divorces hit both of us pretty hard. I also got in a car accident in December and then lost my job the next day. So I had like three or four months span that was really tough on us. Um, but I am trying to, you know, we, we make decent income, so we have enough, we have a little bit of margin. So I'm starting obviously baby step two, um, trying to get going on that. But the thing that kills me is I understand the concept of the smallest, the largest, but the problem is almost all of our small debts are all 0%. And we have large debts that are 28%. And it drives me nuts that I'm going to spend 12 months paying off $15,000, $20,000 worth of 0% while the 30% is accruing $1,000 a month in interest. And I was thinking, you know, we can take a HELOC, cut that rate by 70%. It adds another $800 to $1,000 that we can roll into the snowball and get done, you know, eight months to a year faster.
Rob, you are rearranging the chairs on the Titanic, my friend. This is not going to be the solution you're looking for. And I know you can crunch the numbers and see how much you're paying in interest, and that should make you angry. But here's the deal. The people that actually get out of debt, they don't just move around their debts and get new debts to cover the old debts and pay off the big debt. They just do the debt snowball and get so frustrated and so angry that they're willing to work as much as it takes to get rid of the next debt and get rid of the next debt, freeing up the next payment. And you're going to lose all of that momentum trying to tackle this giant mountain of the biggest debts with the biggest interest rate. So the question is, what are you willing to do and sacrifice to use your savings and future income to get out of this? Are there stuff we can sell on this $250K? Are there cars involved?
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Chapters
6 chapters
1
How can the Baby Steps guide my financial journey?
0:28β2:20
2
Should I consider a HELOC to manage high-interest debt?
2:20β4:47
3
Is it worth going back to school for a higher salary?
4:47β7:50
4
How should young couples prioritize marriage and home-buying?
7:50β14:39
5
What are the emotional implications of a prenup?
14:39β18:12
6
Is moving for a job opportunity a good idea while in debt?
18:12β1:25:03