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The Ramsey Show

Your Money Doesn't Have Feelings! (Hour 1)

29 Jun 2023

Transcription

Transcript generated automatically by AI and may contain errors.

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

29.596 - 50.014 Rachel Cruz

Live from the headquarters of Ramsey Solutions, broadcasting from the pods, moving and storage studio, it's The Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. I am your host this hour, Rachel Cruz, alongside me, best-selling author and Ramsey personality, Ken Coleman. And we're taking your calls, America.

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50.034 - 60.604 Rachel Cruz

It's a free call anywhere in the country at 888-825-5225. Talking about relationships, career, your work. your money, anything and everything.

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Chapter 2: What should I do if I can't afford my student loan payments?

60.664 - 70.916 Rachel Cruz

So give us a call. So first we have Hannah in Columbus, Ohio. Hey, Hannah, welcome to the show. Hi, how are you? Doing great. How can we help?

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72.417 - 92.371

I have a question about my student loans. My loans are privately owned, so I've been paying them for the last three years, but I can't make the minimum payment right now. And my question is, should I just let it continue to accrue as I work through my debt snowball, or would that be a really bad idea?

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94.294 - 108.654 Rachel Cruz

I mean, it leans on more of the really bad idea side of the equation because the debt snowball is paying minimum payments on everything so you don't get behind and then attacking the smallest debt. So how much is your payment every month?

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111.458 - 141.171

So it is about $552 per month. I'm behind 785. Okay. And what other debt do you have? So total, it's about 75,000. Okay. And then counting everything, I have about $95,000 of debt. Counting everything. What's the other 20? 15 of it is credit cards. And then the remainder is some smaller debts like to family and stuff.

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141.351 - 147.982 Rachel Cruz

Family loans. Okay. So the 75 is your student loan. Yes. Okay. And how much do you make a year, Hannah?

149.826 - 162.492

Right around $40,000. I do have a job interview in the next couple weeks to hopefully increase that. Okay. And I'm not counting my second job, which generally makes about $800 a month right now.

162.753 - 164.717 Rachel Cruz

$800 a month. Okay. Well, that's great.

164.9 - 176.079 Ken Coleman

So how short are you? Is it just, you're making your payments on everything else, your four walls, but just this actual student loan payment of $552 a month, how much are you short on that?

179.124 - 185.856

So without touching the income from my second job, I'd be short about $150.

Chapter 3: How can I encourage my partner to be more generous?

248.282 - 253.48 Ken Coleman

Can you do more? Can you do more? Work more?

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253.713 - 256.816

Yes. Yes. I'm waiting for them to approve that schedule.

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257.057 - 279.75 Rachel Cruz

OK, that's great. So, Hannah, I really think in a month, in about four weeks, if you up your working and you work seven nights, I mean, you work every day because it's a level of urgency because you are in an urgent situation. I mean, you're not you're getting behind, which, again, is is we don't want you there. We want you current. Yeah. And you have four hundred dollars in savings.

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279.77 - 302.923 Rachel Cruz

So like all of that can be fixed in about four weeks of making some extra money to be able to build up that emergency fund and get current. So that would be my goal for the net for you to say, hey, in the next three weeks, I got to I got to get this all taken care of. So that's seven hundred and eighty dollars or seven. It's seven hundred and eighty five that you're behind.

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302.903 - 310.332 Rachel Cruz

plus what's remaining of the emergency fund of the $600. We want to get $1,200, $1,300 in here pretty quickly this month.

311.193 - 326.591 Ken Coleman

And then my question is, I want to walk you through this, coming on the heels of what Rachel just gave you, because that's great advice. What is the smallest debt? And when we look at the snowball, you listed them out for us. What is the smallest debt? What's the payment on that per month?

328.894 - 334.253

Um... The smallest debt that isn't owed to family is $735,000.

334.433 - 337.122 Ken Coleman

That's the total?

339.088 - 341.175

Yes, of that credit card statement, correct.

Chapter 4: What side hustles are millennials taking to make ends meet?

425.949 - 428.773 Ken Coleman

I agree, Rach. I was going to ask you. I think that's okay to do at this point.

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428.793 - 430.656 Rachel Cruz

I would have done it, but you're doing that now, so that's good.

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430.676 - 446.58 Ken Coleman

So you're already pausing. So you're really getting after this first initial credit card, which is not much at all with you pulling more hours and getting a better job. You can knock that out fast. And before you know it, you can knock that $15,000 card out. That's a game changer. What's the minimum payment on that $15,000 card?

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448.062 - 452.632

In July, it'll be $295. I mean, that's a raise.

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453.554 - 455.819 Ken Coleman

When you knock that out, now you really get this.

455.879 - 472.018 Rachel Cruz

And for the new job, Hannah, you said you were just interviewing. How much will the new position, if you get it, how much will that pay? Instead of $40,000 making in your salary job, what will it be? It'd be at least 55. That's great. Okay. So Hannah, there's a lot of upside.

Chapter 5: How can I start saving for college effectively?

472.038 - 489.467 Rachel Cruz

I know you feel like it's overwhelming and when you're behind, there's a level of fear and like, oh my gosh, can this even happen? But I think what you can control right now is how much you're working. And to Ken's point, I would go to your part-time job and I would say, I will work, I'll close every night.

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489.487 - 505.601 Rachel Cruz

Like whatever I need to do, go crazy for, at first, like just give yourself a time period, you know, three, four weeks and say, okay, here's what I can bring in. Just again, get on ground level of being current of everything, being able to pay minimum payments, have your emergency fund. And then you start chipping away at this debt, Hannah.

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505.961 - 524.29 Rachel Cruz

Hopefully you get the new job, get the raise of 55,000 and keep this intensity going forever. until it's all knocked out. So I'm excited for you, Hannah. Stay on the line and we're going to give you total money makeover because that's going to give you a step-by-step guide as well and motivation as you're doing this plan. So good luck to you. Thanks for calling.

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530.564 - 535.349 Rachel Cruz

All right, you guys, I have three little ones at home. You have three- Big ones.

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535.369 - 535.91 Ken Coleman

Older ones.

535.93 - 553.129 Rachel Cruz

Or bigger ones, shall we say? At home. And life, it can just be really hard. It can be hard to connect with your spouse, prioritize that when there's kids and there's life and there's work and there's so much going on. But it is so worth it to prioritize your marriage. So-

553.109 - 569.278 Rachel Cruz

That's why this fall I'm inviting you to disconnect from the stress of day-to-day life and reconnect with your spouse at the Money and Marriage Getaway right here at our brand new Ramsey Event Center in Nashville. So for three days, October 19th through the 21st,

569.258 - 591.08 Rachel Cruz

Dr. John Deloney and I will guide you through the entire weekend, again, away from normal day-to-day life and with your spouse to focus on your marriage, set goals, and dream about your future. So you're gonna learn how to communicate better, build intimacy, set boundaries, and make a plan for your money together. And we've seen it happen time and time again.

591.1 - 614.149 Rachel Cruz

When you dream together, when you make goals together, create what you want your future to look like, you start acting like a team. And when you become a team, you become unstoppable. So for this getaway, again, you guys that are killing it on Baby Steps 1 through 3, keep the intensity up. Be focused on your goals. But if you're on Baby Steps 4 and beyond...

Chapter 6: Is it worth taking a pay cut for a new career?

701.587 - 722.687

And so we have those budget line items in our every dollar budget. that outline our generosity to our church of choice and then additional generosity. But I generally find that, like, I'm the one that is more feeling led to do additional tips or give money to people that I see or meet or things like that.

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722.907 - 731.498

So just looking for any advice that you guys might have on kind of assisting my sweet husband with building those muscles.

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731.883 - 748.997 Rachel Cruz

uh grace are you is he um hesitant when you come forward and say hey there's this thing going on i would love to give no oh my gosh no never he is always on board um yeah is he the is he the saver of you guys is he the saver more of the nerd

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749.905 - 778.107

I would say we're actually pretty much both nerds. He does work a lot. And so it's like I'm generally the one that handles most of the outgoing money in terms of like our budget items and things like that. And so I don't know if it's maybe he just like doesn't have the opportunities or not doesn't have them, doesn't see them as much as I do or that it's just,

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778.424 - 801.715 Rachel Cruz

maybe he just hasn't developed those um feelings or those muscles yet of i mean i would tell you grace can correct me if you think that this is off base but i think i would be more concerned if you brought if you know you're the initiator of this and if you initiated something and he was like no that's so stupid i don't want no no no no no no um

802.235 - 814.435 Rachel Cruz

you know, if that was his heart, then I'd be like, okay, let's talk about that. I wonder what is in him that's doing that. But it's just the fact that he doesn't initiate. And Grace, I hope Winston doesn't kill me for saying this. I'm more of the initiator with the giving.

814.475 - 828.478 Rachel Cruz

I'll get a text from someone at church and they're like, hey, there's a foster family, you know, X, Y, and Z, or a tornado came through and a team member needs that. And again, I don't know if it's because I get it more, but I'm like, oh yeah. And I text Winston, I'm like, hey, there's this thing. He's like, absolutely do it.

828.458 - 847.639 Rachel Cruz

But I feel like I'm more of the one that initiates those random acts of giving in our relationship. But I don't fault Winston for that just because I think to your point, I think it gets presented to me maybe more frequently. And Winston is. He's just more of a saver, naturally bent more. And he would tell you more scarcity mindset.

848.5 - 865.943 Rachel Cruz

It's a natural bent, but it's not that he doesn't give or doesn't want to. It's just not natural. on the forefront always like where I feel like you could, you could present like a puppy with a broken leg and we're like, let's just adopt the whole family. Like we'll, we'll fix it all. I get more, I get more emotion from it or something.

Chapter 7: What are the steps to build an emergency fund?

909.932 - 936.909

I guess it does bother me a tiny bit because like I said, I come from a family that's like very, very giving. Um, to really like anyone and everyone. And, um, I just see that as like a big part of my day-to-day life, but, and we haven't been married that long, a couple of years. So I guess maybe it's just like not fully integrated into, you know, his recurring thoughts yet.

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937.53 - 947.92

Um, but I was just kind of seeing, you know, if there were anything that you guys did, um, with your family or if you had any similar experiences, but, um,

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948.372 - 958.205 Ken Coleman

My experience is much like what Rachel said, except it's flipped. Stacey is, you know, she's the one that, I mean, it's not flipped, exact same. She's the one that's always coming to me.

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958.225 - 960.028 Rachel Cruz

Do you feel like that's the case with you guys?

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960.048 - 960.528 Ken Coleman

100%.

960.689 - 961.97 Rachel Cruz

She comes to you more.

962.01 - 972.725 Ken Coleman

Yeah. And I'm like, great. But I will tell you that I'm the one who tends to be more, and it's not a scarcity thing, but I tend to be like, okay, where are we at? What else have we given to this month? And we can't give to everything and everybody.

972.745 - 973.225 Rachel Cruz

Right, right.

973.245 - 991.98 Ken Coleman

I mean, because Stacey's amazing. She would give everything. at all yeah totally uh and not that she's irresponsible but that's what her heart is versus i'm a little bit like okay like for instance okay this is a window in and this may help or may not help grace but i'm going to be transparent and and rachel's get she's really good at like putting me on the spot on the show

Chapter 8: How can I effectively manage my debt while transitioning jobs?

1094.463 - 1113.774 Rachel Cruz

And I don't think he's a bad guy. And it may never be the forefront thing. And that doesn't mean he's a selfish, evil person at all. It's just kind of how he's been. And that's okay. So thanks for calling. So this headline caught my attention, Ken.

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1114.114 - 1114.334 Ken Coleman

Yes.

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1114.635 - 1123.027 Rachel Cruz

Does America's failed millennials so badly that they're turning to $1,000 per month side hustles to make ends meet?

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1123.868 - 1124.128 Ken Coleman

Please.

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1124.148 - 1154.942 Rachel Cruz

So the side hustle has become a big part of people's lives. Two in five adults in the U.S. have a side hustle, according to a recent Bankrate survey of 2,500 people. And 53% of them are Gen Zers and half are millennials. And then 40% are Gen Xers and 24% are Baby Boomers. So the argument here, which you can read some of these data points, is that millennials have been born into a time where...

1154.922 - 1171.615 Rachel Cruz

It's just tough, right? As you leave college, it's the Great Recession, and the job market was all whacked out when we all entered the workforce. And then we were the generation that had student loans to the degrees that we know now. We were kind of the first batch.

1171.595 - 1198.311 Rachel Cruz

big generation to take those on now the housing market it's like it's it's impossible to buy a house now so that's what this article is is is kind of uh oh yeah come on old kin here we go this is my old man friend this is this is gonna give his old man old cranky kin take now the headline is true though everything i did say is true in defense of millennials it is but let me let me let me just wait a second i think you're gonna agree with me on this one even though you're not old and cranky

1198.291 - 1213.043 Ken Coleman

The headline says America has failed millennials so badly that they're turning to $1,000 per month side hustles. The article goes on to say millennials in particular have been struggling to keep their heads above water for years.

1213.208 - 1242.372 Ken Coleman

after hopping around a rocky post-Great Recession job market, dealing with inordinate student debt, I agree with that, more on that in a moment, and shopping around a difficult housing market, all of which has made it harder for them to become financially independent. Now, let's dive into this. This sounds like a sob story, but here's the reality. America has failed generations of students

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