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Chapter 1: What topics are introduced in the beginning of the show?
Live from the headquarters of Ramsey Solutions, it's The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I am Rachel Cruz, hosting today's show with Jade Warshaw, bestselling author. Good to have you, Jade. Glad you are here. Good to be here. And we are here to answer your calls, America. It's a free call. Why do I say that?
I always say it's a free call anywhere in the country, but it's always been a free call for a long time. Yeah. Toll free. Toll free, 888-825-5225. So give us a call. Again, we're talking about your life, your money, your relationships. We are here for you. So first up, we have Debbie in Raleigh, North Carolina. Hey, Debbie, welcome to the show. Thank you so much.
First, I'd like to say thank you for all the education you guys have given me over the last few months. It's been very helpful in my journey. I'm so glad. Thank you. So here's my story. I got divorced about four years ago. It took about four years to get divorced. I was married for almost 25. Oh, man.
So I've been navigating my life for the last couple of years trying to figure out what works for me. I was fortunate enough to get a nice alimony through my divorce. And I had, my ex-husband had to give me a vacation home of ours that I sold for twice as much as what we valued it for. Oh, wow.
I have $1.6 million in the bank and I'm looking to build a house and my financial advisor is telling me I shouldn't pay cash for my house. And I am just, Like, it's stressful for me. I don't know what the right thing is to do. Is he giving you a reason?
Is he giving you a reason? What's his reason for that?
He says it just doesn't make sense to take 37% of my money to build a house. Like, that it just doesn't make financial sense. And I haven't, you know, when I was married, you know, my ex-husband took care of all of our finances. So this is so new to me. And I listen to your show a lot and I hear all the different things, you know, that you guys say about what they claim.
If the interest rates are lower, you're getting more for your money if it's invested. And again, I get super confused. And so I just don't know. You know, I'm 50. I'll be 60 in two months. Okay. You know, looking towards retirement. So, Debbie, what other debt do you have? Do you have any debt? I have no debt. Okay. What's your current home? What's your current home valued at?
I don't have a house right now. I live in an apartment. Okay. Okay. And how much are you looking to, how much are you wanting to spend on this build? So, the quote for the house is $630,000.
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Chapter 2: What financial challenges does Debbie share?
Okay. And what are you living off of right now? Like, what's your, are you still working? So I...
I get alimony, which is about $62,000 a year tax-free. Okay. And then I have a lot called in my side gigs for my jobs that I absolutely love, that I make about $25,000, which is, I'm a nanny, and I truly love my job. So, again, I'll be 60 soon, so I don't know how long all this is going to last as far as my income goes. Yep. Well, my alimony's lifetime. Alimony's lifetime. Okay.
So, Debbie, your financial advisor is naturally always going to yield in the sense of investing your money. Of course. Because that's how most people make money. And again, we're not mad at that. There is a time and a place to invest money, and that is a wise thing to do. But it's also really stupid, Debbie, in my opinion, to go and take out a loan for something that you have money for with a
plenty of other money of a million dollars left over if you said you had a million dollars you want to go buy a million dollar house i'd say no debbie we can't do that but you're spending six yeah you're gonna have a million dollars at 60 years old as a net worth of just cash plus a six hundred thousand dollar paid for house and if you invested that million dollars debbie and you did that you you know for 20 30 years you're okay debbie you have a paid for house you have no bills
I know. That sounds so... I almost would just fire your financial advisor because I think you're on different pages. I think the way they view money is in a very stereotypical way. And again, Ramsey, we're known as being a little bit different in this arena anyways. But from a mathematical standpoint, this is not a massive risk.
You're going to have a million dollars still, still in a paid-for house. Mm-hmm.
and you know there's always there's always that equation of peace who wants to enter into retirement with a mortgage payment right right that's just more that you'll be that's more money you'll be pulling out of that investment anyway i mean it's going to get paid for regardless so you may as well pay for it up front yeah and debbie the 630 that that's that's everything right land build and all correct i've already bought the land okay it's already purchased yeah yeah and it
It's on a beautiful lake. Like, I feel really special and fortunate.
If I woke up in your shoes, I would definitely do this.
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Chapter 3: What advice is given regarding paying off debt?
Welcome back to The Ramsey Show. Today's question of the day comes from Taylor in Missouri.
She says, my husband graduated college about 10 years ago and has not paid off a dime of his $80,000 in student loans. Anytime I approach him about it, he just blows me off. I'm a stay-at-home mom with our third baby on the way, and I'm afraid the government is going to garnish his wages. What should I do? Well, I mean, yeah, you're getting up to it. 100%.
Like if you don't pay your student loans, that first day that you're past due, that's considered delinquent. And then if you're delinquent for 90 days, you're considered default. And then at that point, a lot can happen.
Number one, your loan can go into acceleration where basically the whole amount is due at once and you're no longer eligible for payment plans and you're no longer eligible for forbearance or whatever those other things are. And they can start to garnish your wages amongst other things. So if I were you, I would be very concerned about this.
These are those times where you have to have really clear boundaries in place and you have to have a...
a what if like if and kind of I hate to say it like an ultimatum but this is the way I feel and here's what I believe needs to be taking place and if these few things don't start to take place then this is what's going to take place on my end and so that's the way I would approach it my guess is she doesn't say what the conversations have been but I would approach it
Yeah, yeah. And if he's a husband that blows me off. That's a problem. It's probably not just in this scenario either. It's probably not just about money. That is how your marriage functions. Because it's not like, oh, he's so empathetic and listens. And we're a team here and there with everything else. And there's one thing he's just not. He just turned. That's usually not the case.
Usually there's a pattern in who you are as a person. That's pretty consistent through all the situations in life. And so my fear, Taylor, is that there's probably more of a marriage issue here. Then the fact that he's just not paying his student loans, which is an issue, too.
So, yeah, I think there's there's a lot of work to be done, I think, on the marriage side of this, because a husband that just blows off what a wife says or a wife that just blows off what a husband says. There's obviously not a level of respect and empathy and humility there. And those are some ingredients that you need.
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Chapter 4: How can Debbie approach her financial advisor's suggestions?
He just blows up when I try to say, hey, let's try a budget. Hey, here's all the credit cards on an Excel spreadsheet that shows all the percentages. It's just kind of banging my head on a wall and I don't know how to protect myself, how to protect my son. The only good news is that I do have a 401k that is in my name from before we were married.
And then we also have, I have a little bit of savings and then he does have a life insurance policy. God forbid anything happens, but he's, he's not well mentally and he's been, you know, threatening a lot of things. And I thought I should try and get some advice.
Are you thinking about walking away from this?
At this point, I really can't right now. I can't right now. My business is here on the property. And if I would leave, the other thing is I would be taking my autistic child away from the only home he knows that he's had his whole life, his dogs, his everything that's comfort to him.
And your husband's not, is he, it's, I'm guessing based on what you said.
I think he knows that he's, in the toilet. I think he realizes, I mean, he's paying the minimums on the credit cards. That's it. And where's the, where's the revenue of your business going in? What account is that going into? It's going in with everything else. We, I mean, I don't make much last year. He had it written down here last year.
Hey, do you suspect that there could be IRS debt as well? Cause when you tell me that all the business bills and all the personal bills and everything's together, that sounds like a mess.
I don't. I think he's pretty OCD about keeping track of stuff. Last year's gross income was $233,000, but then by the time we got to the bottom of the income, the income is $26,000. Once he takes off depreciation, vehicles, all that kind of stuff.
What type of business does he have?
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Chapter 5: What are the key elements of a successful budget?
So where's it going? Yeah. Are you guys on a budget?
Yes, we are on a budget where we're at now, too. So the credit card debt that I gave you, one of them was the twelve five. The other two are through. I'm doing a debt consolidation because they were maxed out and I couldn't afford the minimum payments. So I moved that into one payment. And then also, you know, I'm trying to I'm nervous. I'm nervous. That's OK. You're fine. You're fine.
We have time. We have time.
Chapter 6: How can I effectively manage credit card debt?
You're good. And then in addition to that, I pay for my son. He goes to a private Christian school.
That might be an area. How old are the boys?
My oldest is seven. My youngest is four.
So seven and four. How much is tuition for the private school?
It is $3,700, I want to say, for the year.
Okay. What else?
So you're paying $308 a month for... Yeah, I'm curious where the $6,500 is going, though. Because how much are payments for your car? How much are they for your car?
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Chapter 7: What should I consider before selling my house to pay off debt?
My car is $480 a month. Okay. And then I pay for my wife's car as well. Which is how much? $240.
Okay, so I've still got you at $5,280.
Keep going. Okay. Then there was student loans involved in that, and that is now no more because the president, he just took those. Well, let's pretend.
Let's just pretend. What would the minimum payment, what was it? $200. Okay, minus $200. So now we're at $5,080.
Chapter 8: How can I encourage my adult child to become financially independent?
Keep going. I'm just helping you work through this. It's not to try to call you out.
No, not at all. I appreciate it. Let me think. Then... Uh, cell phone, uh, cell phone bills, one 90 a month. Um, and then I've got a car insurance, uh, which is up at one 80 a month. Okay. Okay. Um, then, uh, of course, you know, we're talking about tithe. So 10% of, uh, the amount that I gave you there. So 800.
Yeah. Okay.
3,900. Yeah. What's been on these credit cards, Jared? What are you putting on for $13,000 and $12,000? Well, a lot of that was just trying to make the ends meet, not having enough to make the bills. I just recently, my income is higher the last couple months because I started asking four more hours at work. Okay, that's good. So that's new. So it was below that. Okay, okay.
Okay, so Jared, I mean, just looking at these numbers, there's not like a, oh, I forgot the $3,000 bill here, whatever that is, right? Like there's a month, there's not a big gaping hole. I may just call it out, Jared. I just feel like you guys have been sloppy. Would you agree? Well, I wouldn't disagree. Yeah, I think that's it.
And Jared, and I'm going to say this, because you mentioned this, and as believers in this room, I think we're spiritually somewhat consistent. Scripture has nothing good to say about debt, right? Nothing. Every time debt is mentioned, it is in a negative fashion. Now, it's not a sin. We'll still go to heaven. It's fine if you still got your credit card debt.
Like, okay, everything's fine in that regard. But the wisdom that comes from every time it is spoken it is in a negative fashion. And so in that sense, I would say, let's lean on the spiritual conviction that we all believe here from something that is consistent, and that is eliminating debt. So you've been running to something that is getting you deeper and deeper in a hole, right?
And so I think for you guys, if you tighten the subject, I'm encouraged by it because I think your numbers are there. I really do. And so I want you to hang on the line because Christian's gonna pick up and we're gonna give you every dollar premium. And I want you to cut up these credit cards. And I want this to be a moment where a line is drawn for you all. And you're going to say no more.
We are not running to these credit cards to make minimum payments and make ends meet because you don't need to. You have thousands of dollars and you have a really blessed situation of even as this as in this pastoral role to have the mortgage paid for the housing allowance. I'm like, you guys are in a really. Great position. You're going to be working a crap ton. You're probably exhausted.
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