Digest

Colin, a 21-year-old father of three, calls in to the show seeking advice on managing his finances. He recently switched careers from the car business, where he earned $130,000 annually, to nursing, where he now earns $80,000. This income change has made it difficult for him to manage his existing debts, which include two mortgages, two car loans, student loans, and credit card debt. The hosts advise him to sell his rental property, which is worth $130,000 and has a mortgage of $96,800, to clear $30,000 in debt. This will allow him to sell his cars, which he is upside down on, and purchase a more affordable vehicle. With the freed-up car payments, he can then focus on paying off his remaining debt, including student loans and credit cards, using the debt snowball method. The hosts estimate that he can be debt-free within a year if he follows their plan. They also encourage him to utilize the resources available at Financial Peace University to help him navigate his financial journey. The hosts then discuss the importance of budgeting and how it can help people gain control of their finances. They recommend using the EveryDollar budgeting app to track spending and create a plan for every dollar. They also emphasize the need to find ways to make more money, such as through commissions or side hustles. The hosts then discuss the importance of having an emergency fund and how it can help people avoid debt in unexpected situations. They recommend having six months of expenses saved in an emergency fund. The hosts then discuss the importance of having a plan for the future and how it can help people achieve their goals. They recommend using the Total Money Makeover book to help people create a plan for their finances. The hosts then discuss the importance of celebrating success and how it can help people stay motivated. They announce the Live Like No One Else Cruise, which is a debt-free cruise for those who have paid off their debt. The hosts then discuss the importance of helping others and how it can help people feel fulfilled. They encourage listeners to help their children achieve their financial goals. The hosts then discuss the importance of having a positive attitude and how it can help people overcome challenges. They encourage listeners to stay positive and to believe in themselves.

Outlines

00:00:00

Introduction

This Chapter introduces the Ramsey Show, a program that helps people win in their lives, including their finances, work, and relationships. Ken Coleman and George Campbell, the hosts, are excited to help listeners with their money and work-related questions.

00:01:19

Colin's Financial Situation

This Chapter features Colin, a 21-year-old father of three, who is struggling to manage his finances after a career switch from the car business to nursing. He has two mortgages, two car loans, student loans, and credit card debt. He is upside down on his car loans and is trying to figure out how to manage his finances with his reduced income.

00:08:51

Real Estate Market Discussion

This Chapter features a discussion between Ken and George about the current real estate market. George believes that rates will slowly come down, leading to an increase in home values. He advises listeners who are financially ready to buy a home to do so, as rates are not expected to change drastically anytime soon. He also advises those considering selling their homes to do so if they are ready, as the market is not expected to experience significant fluctuations.

00:11:39

Master's Degree and Debt Payoff

This Chapter features a caller, See, who is considering pursuing a master's degree in speech pathology. She is currently in baby step two of the debt snowball method and has $22,000 in student loans. The hosts advise her to focus on increasing her income before pursuing the master's degree, as the three-year program will require significant financial resources. They suggest that she aim for an income of $60,000-$65,000 before enrolling in the program.

00:20:27

Maintaining Debt Payoff Intensity

This Chapter features Ryan, a caller who is in baby step two of the debt snowball method and is struggling to maintain the intensity of his debt payoff journey. He and his wife are working long hours and are feeling exhausted. The hosts advise him to pace himself and consider reducing his work hours to avoid burnout. They also suggest that he focus on reducing expenses, such as his mortgage, to create more financial margin.

00:31:12

15-Year-Old's Financial Habits

This Chapter features Joanne, a caller who is concerned about her 15-year-old son's financial habits. He is working 56 hours a week and is very focused on saving money. He is also planning to buy a house and start his own landscaping business. The hosts reassure Joanne that her son is not exhibiting unhealthy money habits and is simply demonstrating a strong work ethic and financial discipline. They advise her to encourage him to enjoy some of his earnings and to ensure that he has a balanced life.

00:40:56

Marriage Built on a Lie

This Chapter features Emma, a caller who is struggling in her marriage. She has been married for two and a half years and has been living separately from her husband. She has accumulated $20,000 in debt and is struggling to make ends meet. Her husband recently revealed that he never wanted to get married and only did so to avoid hurting her feelings. The hosts advise Emma to consider ending the marriage, as it is not a healthy or sustainable relationship.

00:50:15

Whole Life Insurance Surrender

This Chapter features Benjamin, a caller who is considering surrendering his whole life insurance policy. He is in his early 40s and the policy has a death benefit of $120,000 and a cash value of $15,000. The hosts advise him to surrender the policy and invest the cash value, as he can get better returns on his investment elsewhere. They also recommend that he purchase term life insurance to protect his family.

00:53:44

Emergency Fund and Debt Payoff

This Chapter features Joe, a caller who is concerned about the tax liability associated with his high-yield savings account. He has $25,000 in the account and is also carrying $100,000 in debt. The hosts advise him to focus on paying off his debt, as the tax liability on his savings account is minimal. They recommend that he use the debt snowball method to pay off his debt as quickly as possible.

00:58:02

Co-Signer Liability

This Chapter features Caitlin, a caller who is facing legal action from lenders after co-signing on two vehicles with her ex-boyfriend. Her ex-boyfriend has stopped making payments on the vehicles and the lenders are unable to locate him. The hosts advise Caitlin to find her ex-boyfriend and get the vehicles back to the lenders to avoid further legal action.

01:24:24

Budgeting and Sacrifice

This Chapter features a caller, Mike, who is struggling to manage his finances after taking a new job. He is in debt and is considering filing for bankruptcy. The hosts advise him to create a budget and to find ways to make more money. They recommend using the EveryDollar budgeting app to track spending and to find ways to cut expenses. They also encourage him to find ways to increase his income, such as through commissions or side hustles. The hosts believe that Mike can get out of debt within two years if he follows their plan.

01:28:41

Financial Planning for a Contractor

This Chapter features a caller, Jenaro, who is an independent contractor and is struggling to manage his finances. He is in debt and is trying to figure out how to save for taxes. The hosts advise him to create a budget and to track his spending. They recommend using the EveryDollar budgeting app to help him manage his finances. They also encourage him to save for taxes and to avoid using his tax savings for other expenses.

01:34:38

Selling a House and Buying a Sailboat

This Chapter features a caller, Joshua, who is a disabled veteran and is planning to sell his house and buy a sailboat to travel the world with his five children. He is concerned about the size of his emergency fund and whether it will be enough to cover a potential deductible on his sailboat. The hosts advise him to consider the potential risks of his plan and to make sure that he has a plan in place to cover any unexpected expenses. They also encourage him to consider the potential impact of his plan on his children's future.

01:38:55

Live Like No One Else Cruise

This Chapter features a discussion between Ken and George about the Live Like No One Else Cruise, which is a debt-free cruise for those who have paid off their debt. The hosts are excited to be going on the cruise and they encourage listeners to join them. They also discuss the importance of celebrating success and how it can help people stay motivated.

01:48:37

College Funding and Work Ethic

This Chapter features a caller, Linda, who is trying to figure out how to tell her son that his college is fully funded by his uncle. She is concerned about him taking it for granted and not maintaining a strong work ethic. The hosts advise her to have a conversation with her son and to set some stipulations for the funds, such as requiring him to maintain good grades and to graduate within four years. They also recommend that she involve her brother in the conversation and that they work together to create a plan for the funds.

Keywords

Q&A

• What is the best way to manage finances after a career switch that results in a significant decrease in income?

  The hosts recommend selling assets to clear debt, creating a budget to track spending, and finding ways to increase income. They also encourage using resources like EveryDollar and Financial Peace University.

• How can I effectively budget my money and gain control of my finances?

  The hosts recommend using the EveryDollar budgeting app to track spending and create a plan for every dollar. They also emphasize the need to find ways to make more money, such as through commissions or side hustles.

• How much should I have in an emergency fund?

  The hosts recommend having six months of expenses saved in an emergency fund to avoid debt in unexpected situations.

• How can I ensure my children don't take a large gift for college for granted and maintain a strong work ethic?

  The hosts recommend setting stipulations for the funds, such as requiring good grades and graduation within four years. They also suggest involving the giver in the conversation and creating a plan for the funds.

• What is the best way to handle a job loss and regain confidence?

  The hosts recommend grieving the loss, surrounding yourself with positive people, and reminding yourself of your skills and qualifications. They also encourage taking action by seeking new opportunities and practicing your skills.

Show Notes