I Have $120,000 Buried in Tin Cans (Hour 2) - Transcripts

January 24, 2023

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George Kamel & Jade Warshaw answer your questions and discuss: I have $120,000 buried in tin cans, How digital subscriptions can be death by a thousand cuts, High-yield savings accounts, The "rent-a-chicken" trend, Convincing a boyfriend to pay off his debt. Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Want a plan for your money? Find out where to start: https://bit.ly/3nInETX Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6 Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

Transcript

Live from the headquarters of Ramsay Solutions broadcasting from the pods moving and storage studio It's the ransy show where america hangs out to have a conversation about your life and your money I'm george camel hosting this hour with my friend jade warshaw and we're taking your calls america at triple 8 8 2 5 5 2 2 5

Jim kicks us off in austin texas jim. Welcome to the show. Thank you. Thank you for taking the call. Sure How can we help today? Uh, well i'm looking for some advice on how to invest 120 000 in cash. Whoa retired in 2010 from my first job I've been working a second job full-time now and over the years I've Saved a lot of money and i've got uh about three different bank accounts with money in so i'm financially good there But I have 120 000 in 10 cans buried in the backyard that ain't making me no money Wow

Let's try to find out what I can do. We finally found the guy with the 10 cans of money in the backyard. Wow Let's start with your address. Where exactly can we find? It's going to treasure hunt

Jim's like he's like, my name's not jim and I don't live in austin fool. Jim. Jim's like he's like, my name's not jim

And I don't like you fell about those right there to shoot you. Oh, man. I believe you jim I totally i'm not going to your jim's property. So you've you've done a great job saving. Do you have any debt?

I have no debt whatsoever In 2010 I paid everything off and I've worked Uh some uh for the municipality that I work for now and I do a lot of security jobs on the side And I have been able to really really save a lot of money My wife is retired and I should be retired. I'm at 67 years old. Do you just like working? Um, I do like working. I don't like sitting at home. I don't I retired in 2010. I saved a card six months

Didn't like it. So I got a job good for you. That's awesome How much money do you have?

Do you have anything invested or is this all just sitting in checking accounts and savings accounts? How much money do you have?

Well, I have uh two bank accounts two different banks and then I have a credit union With some money entity too. So those three accounts is the only making whatever the interest rate is for the banks

Oh, that stinks. So it's not what's that's what's the total of all that money that's in the banks?

Uh about about 125 000

Okay, so you got 125 in banks and then 120 000 in cash

And you're wanting to invest this and I wanted to invest at least 120 000 in cash because I know it's not making me anybody

Well, even your well, even your the money that's sitting in those banks you could do way better in high yield savings account You could be making three or four percent on that instead of you know, zero to a half percent

Okay. Well, that's what the advice I need and how to do that and what to do to get to that point now I would tell you Uh, I have a cd for the wife and one of the accounts were six thousand. So there's another six thousand there And then I do invest uh in the 457 program. I'm not sure if you're aware of that How that works through the county? Is that like a deferred compensation? Exactly. Okay, and I have about 15 000 in that

So do you have any retirement? Is that like a deferred compensation? Okay. Do you have any retirement options through your current employer?

What what are those options? Well, i'm drawing an annuity from my first job Uh a considerable amount of money i'm drawing Social security because i'm at 66 and two months and go full so-called social security there How much you have a 401k or anything through work? No Okay It's the uh, two to one match through the county. Uh, I was a tmrs Before when I retired from the other one now, it's a protection municipal county retirement Okay, both of them are good retirements

So do you need the income created from these investments or are you living off of the annuity and social security plus your current income?

That's what i'm living off of I don't really use this other money for anything other than just sitting there Okay, even in the even in the uh bank accounts, uh, just let it sit there

So I would leave enough to have a fully funded emergency fund in that high yield savings account And it sounds like you'd be more comfortable having more money in there Are you going to plan on making any big purchases in the next few years? No Okay, you got to pay for house Yes, sir. Great So the full the first focus you want to look into is tax advantaged accounts Meaning things that have some kind of tax implication that can help you avoid paying uncle sam, uh his due And so that would be things like a 401k or anything roth. So a roth ira. What's your household income?

No, okay. You got to pay for how? Uh From it's just me right now. So it's uh

Let's see 30 30 60 probably around 90 to 100 000 a year. Okay Yeah, you've got options to to make this work a whole lot more for you than these bank accounts

And so beyond you've got options to to make this work a whole beyond tomorrow. The wife starts on her social security

So we'll have her income Whoo payday. Yes. Well, you guys have done really well. I mean, I know it hurts to look back and go man over the 12 years this money's been sitting here. It could have grown at you know, eight to ten twelve percent and instead it just You know couldn't beat inflation

Um, but I could kick myself for letting it sit there. But uh, well, let's look to the future And be be comfortable

I need some advice and some help to get some kind of investments in it. Well, let's look to the future Yeah, well, I would for sure you need to connect with an investment professional who can walk you through all of your options and dig Into all the details and we've got some that we vet all over the country We have some in the austin texas area that can help you If you just jump on to ramsysolutions.com and click on ramsy recommends you can connect with a smartvester pro and they'll walk you through Hey jim. Here's all of your options that we could do with this money They're not going to force you to do anything. You still call the shots They're just going to educate you on what you could do and where to invest that money to help it grow They're probably going to recommend things like mutual funds These are groups of hundreds and thousands of stocks that can help your money grow With way less risk than just a single stock win one company. Okay, that's an example There's index funds that you could also invest in which are just tracking You know like the s&p 500 tracking the top 500 publicly traded companies and their growth or kind of all banking That's what the economy is really based on when we look at the stock market. Is that s&p 500?

So there's a lot of options and uh, you know, you you still got time. How old are you? That's an exam 67

So, I mean jim, we still got you know, what 30 years ahead of us here to invest this money and let it grow

I hope so. Yes, sir. You got kids. I'm looking for

Uh, yes, but they're all married and grown and i've got uh, three grandkids and one on the way you got kids I'm looking I love that well, you know, i'm a bible believer man and it says a good man leaves an inheritance to his children's children

And so that's a great goal for you to have well, I do have

I do have for the three that I already have I do have my accounts for them set up at the credit union. Love it Man, well, you're off to a great start. You've got some homework to do jim, which is let's research a good high yield savings account There's there's a ton out there. You can look into marcus by golden and sachs or ally We don't have any affiliation with them. You just want to make sure they're fdic insured Which means your money's covered just like it would be with that credit union And those for sure are and then connect with that smart investor pro and get investing Don't just leave this sitting in the checking account breaks my heart I hear you got six figures that have been sitting out there for over a decade, man But you've done really well and being debt free really helps the situation jade. We love to hear that So thanks for the call jim more of your calls coming up on the ramsey show i'm george camel joined by jade warshaw This hour this is the ramsey show the number to call is 88825 5225

Joel joins us up next in greenville, south carolina. Joel. Welcome to the ramsey show. Yeah. Thanks for taking my call I don't really have a question. I I really just wanted to share kind of what i've been able to accomplish and What i've learned about my finances in the last even the last year or so I've never really struggled with credit cards. My problem's been subscription Yeah, the five dollar ten dollar monthly or billy once a year type subscriptions Yeah, yeah, I figured up that You know I was paying sometimes two three hundred dollars a month in those things because here's what happens They say ten dollars a month or eight dollars a month if you pay for a whole year And then you forget about it a year later in february suddenly you get a bill for a hundred dollars

And like where'd this come from? I wasn't planning for that. Absolutely. That's a tough one

So what was your solution? I've been on a year-long war against subscriptions And canceling any of them that I can and here's what happens So you have netflix and you start thinking you own those movies. You don't you stop paying to go away, right? So so it's like you kind of feel like you're gonna lose something But I realized if you if you want to sign up Don't let you sign up the next the next the next week and stuff So i've i've been canceling them as much as possible I especially hate the ones that lock you in because you feel like you depend on them like i'm good I'm sick of gmail and getting all spanned. So the storage dude. I just did that joey

Oh the storage dude. I just did that joey I gave google my two dollars so they'd stop threatening me them. I'm not going to get email anymore

No joke. I had I had three cloud backup services three or four photo backup services

Is two music subscriptions five streaming services. This is wow. Wow and a partridge in a pear tree

How old are you joel i'm curious? How old are you joel i'm curious? Oh, i'm in my mid 40s. Okay, and uh, you know, it's like some of them I had for years like And and also like your amazon prime studies show that People with prime subscriptions pay more on amazon the longer you have them the more you pay on amazon

And so is like i'd had that for like it makes sense. Then it's like ingrained it makes sense Then it's like ingrained in your life

It's like you're passing this down to your kids your amazon account you depend on their photo backup you're dependent on on You know their music services and they they they

Edged their way into every part of your life digging their claws into you sick of it digging their claws into you sick of it Absolutely. Well, i'm glad you fought back against it joel and there's uh, you know for the listeners out there where there's a lot of ways they can rally against us. Number one is just paying attention to their money. When you sign up for something, go ahead and add it as a line item in your budget and inside of every dollar or budgeting tool you can actually add a due date. And so, you'll know exactly when that's gonna come due. You know exactly when it's gonna happen and you'll know to cancel too. I set calendar reminders all the time when I sign up for stuff. I'll set multiple calendar reminders for me to cancel it

before the time comes due to pay. I'm a little bit more extreme than that so what I started is, Okay, let's say there's a new season of a show like Stranger Things that I want to watch and I'll sign up for Netflix. I'll cancel it immediately and it will last for that month. It'll still give you the rest of your 29-day trial. Yeah, and that way, again, I'm living intensely. I'm not letting it just get become a habit and I find that I'm not using it because there's so many companies out there that are banking on people paying for their service but forgetting about using it.

It'll still give you the rest of your 29-day trial.

That's so good. So Joel, how much were you actually spending per month? Like when you, at your height, at the height of this addiction, how much were you spending on subscriptions?

If you count everything, including the Amazon Prime and all that, it probably got up to 150, 200, sometimes a little bit more than that. And again, it's the death of a thousand paper cuts, right? Because you have $10 a year, audible $15 a month, all this stuff that, again, those are great services if you use them. But again, I just found it just became so much and would just, especially with the annual ones, even a setting reminders, it never came at a convenient time where, oh, I have $60 more just sitting around that I want to spend on that because, or it would be like, any of these videos or blogs about 10 websites that will change your life that you didn't know existed, those are all influencers paid marketing commissions to sign up for those. And I'm in the tech industry. I work for a Microsoft partner. I always love technology because I'm a sucker for that tool that's going to make me more productive, make me a better note taker, make me organized. It never does. You don't use the tools you have now. Why is some awesome new AI powered thing going to make you better at that thing if

you don't use what you have now? Well, they're slick marketing that always makes us think I'll be more productive. And I got to get the premium version now because it has this feature. And so that's a tough thing, Joel, that I think a lot of, you know, especially with the newer generations, Gen Z, millennials, even Gen Xers are struggling with, is this just digital clutter in our life

that's keeping us broke. You know, I know for Sam and I, one of the things we did is, you know, because some of them are slick, like Apple is slick. You just see the payment come out. It'll be like $8.99, but it doesn't say what it was. Oh, exactly. Never says what it's for. And the same thing with Amazon, you know, the charge comes and it's just, you know, $27.99. You don't know what it was for. So we really started getting intentional, intentional about labeling as they came into our every dollar budget. We would label it and really track it towards where it was going. And then you really see, man, like Amazon, it's not just subscriptions. Like are you paying, is it for groceries?

Is a household goods? Is it just crap? You know what I mean? And I think that when you label it out and then you go through the Apple ones and you label them out, you're like, okay, this is, this one was Spotify. And this one was, you know, the workout app. You can really start to see where you're spending and where you're starting to overlap. And better than that, just setting a budget on, I am only going to spend no matter what, I only have $75 to spend on subscriptions. And then like you said, it's like, Hey, I might have to cancel Paramount plus this month. And I got to wait until I'm watching Yellowstone George. I don't know what you're watching. I'm trying to watch 1883 out here.

Shots fired. That's right. I got to wait until I'm out here. How are you going to see the shots fired? To the iCarly fans out there. Well, Joel, I'm glad you fought back against the system and saved yourself, you know, 150 bucks a month. Way to go. That's great.

Yeah, absolutely. And just for one thing, it makes your finances and your budget so much simpler, because you don't have a million things that say Apple, Apple, Apple, or Google, Google, Google. It's kind of like, you know, you shut the power off to your house, you try to get the little meter to stop spinning. It never does. Same thing. It's like, just can't get those to stop. And, you know, that's why, again, it's taken me a full year, because I've still been getting and even like Saturday, I saw an ad for some new streaming service, and I almost hit the button subscribe to the thing, you know, I want to watch those shows like, I don't have time for that stuff.

Oh, yeah. I mean, I mean, when we have four subscriptions, there's just too much content out there already. And so I feel good. If I get no greater joy than canceling a subscription that

I was not using. I know that's right. And can we just say if you're in baby step two, you don't have time for these subscriptions because you're out here working. That's right. You don't have time to watch Netflix and Hulu and Paramount Plus and YouTube TV. If you have that

much time, you are not working enough. And that's right. And then still complaining that you can't get rid of the debt fast enough. Well, here's a fun little exercise for you. If you're an iPhone user, just go to your settings, click on your name at the top, and then click on your subscriptions. And it will show you a whole list of all your subscriptions. And you can just tap on it and cancel it. I love that feature. So there we go. I just figured I subscribed to the storm watch app that I'm going to cancel right now in front of America for 99 cents a month. I was paying because I got freaked out by a storm coming through. And so Nashville Severe Weather, who I love on Twitter, was like, hey, you might want to get your own local app for this to really track it.

It'll alarm if a tornado is coming through by your house. You just saved yourself $12 a year, George. And here's the life hack James will appreciate, our producer. There's a site called privacy.com. I have no affiliation with them, but you can create basically one-time use debit cards with limits and time limits and transaction limits that are connected to your debit card, but it won't keep charging your bank account. And so if you know you just want to pay for something once or sign up for a free trial, this is a great way to never actually get dinged and fall for the stupid tax. So check it out, privacy.com. I've been using it myself, enjoying it. And it's fun time. So that's a fun call to remind us of the sneaky ways we are becoming broke as a nation. And it's from subscriptions and they add up. And if you start to cancel those, you're going to give yourself a raise in your budget by a hundred bucks, 150 bucks.

And then you realize I can live without this. And you sure can. My life is better because I have margin in my budget.

Love it. Thanks for the call, Joel. This is The Ramsey Show. Yes. No. So yeah. Well, here's a fun

good, good point because I got free by your house. Welcome back to The Ramsey Show. I'm George Campbell joined by Jay Washaw this hour. Our question of the day comes from Brent in Virginia. Here's what Brent is asking. What are your thoughts on high yield savings accounts? Are they regular bank savings accounts? If so, which ones do you recommend? And do you have to file income tax on interest gained from them? These are great questions, Brent. They really are. I feel like that's a hot topic lately.

I know I get, you wouldn't believe how many messages I get weirdly, like per week of just people going, Hey, what's a good high yield savings account? HYSA. And the reason is interest rates on those accounts have gone way up. Yes. I mean, it was at, you know, back in 2019, I think you could get 2% on these accounts. And then it all went downhill to where you were getting half a percent. And then all of a sudden in the last year, it shot up. And so now you can easily get 3% or more on a high yield savings account. And here's what it is. It is slightly different than a bank savings account. They're both going to be federally regulated, both going to be liquid savings accounts. High yield savings accounts usually just means these are online banks and they have less overhead because they're not brick and mortar stores.

They have to, you know, staff for and build. And so they can offer higher

savings rates. So there's a ton of them out there. They really are. I feel like that's a hot topic lately. It's I opted for the ally one. I mean, this is not to push them for, I mean, these are

all banks. We have no connection here at Ramsey to any of these banks. These are just kind of personal preference. I know Rachel's an ally fan. I use one called Marcus. And the key is make sure they are federally regulated. So they're FDIC. That means they're insured up to $250,000 per person on the account. So that's one thing you want to look at. The other one is all the fees and all the minimum balances and transfer that. And so you want to make sure you're finding one that has little to no fees, is easy to use, will transfer your money quickly from your savings account over to your checking account at your local bank or wherever you do your banking there.

And the other thing to think about, which I think you mentioned here is you are going to get like a 1099 INT for that interest. You know, I don't know how much you plan on stocking away, but yeah,

you'll have to pay taxes on the interest, right? Yes. And so they will, you can log into your account and download that form. I just did that this week to bring to my tax appointment. And I mean, if you've got a lot of money in there, so if you're saving up for like a house down payment, you could have some serious gains on that. And if you look at a 4% on $100,000, for example, that's pretty serious over the course of a year. A decent chunk of change. But you know, it's okay. You add it to your taxable income and it's still worth it to have that money grow for you. We take calls all the time where people are just watching their money, not even beat inflation, just sit there dying in a normal checking or savings account at the rate of 20, 30, $40,000. So I would rather have that money grow for me interest you pay is a penalty. So interest in this case is a good thing because it's a reward.

So highly recommend all of you if you've got a bunch of money in savings, move it to a high yield savings account. It's a great place to store the majority of your emergency fund if you want to keep a little bit in your local checking for those little ankle biters. So you don't have to wait for it to transfer. That's fine. Mine has an ability to do wire transfers. So if you do need the money, you know, same day or next day, you can do wire transfers. Just watch out because your local bank may have a fee to accept that wire transfer, something to look out for. Very good. Great question. Only I am excited to talk about high yield savings accounts. It really just lights

me up like a Christmas tree, my tax upon some very good. I know. When we saw the question, I was like, George, this has got you written all over it.

Love it. But you got way too excited. It's a fun, well, now the interest rates are back. It's a way more fun conversation. Cause now I'm like, what are you doing? Jump on that my friend. And also there's a lot of high yield savings accounts that are attached to some of these giant, I'm going to call them not scummy companies, but a lot of credit card type companies out there. Yeah, that's where you got to be careful. That's what I don't, I don't tow over that line. Now all banks are going to have debt products. It's the nature of the industry, but it doesn't mean you have to go to discover and step into the lions den because that's basically a gateway drug for you to give them all your information so they can market to you all of these amazing offers, 0% on this credit card if you open today.

And so I like to find ones that aren't as heavy on the marketing side for their debt products. Yeah, that's where you got to be careful. Yeah, I agree. I agree. I don't think that I get any from mine, but. They probably know better. They know better got to come over here with that mess.

They know the concept Come over here with that in my doorstep in my mailbox. I love it. Well, Jade, in other news, eggs are all the rage among the youth, my goodness, today's America. And now there's like memes, we're making fun of it. But

there was a hilarious article that we got sent. What is my goodness America, what is it Unbelievable. So the nationwide egg shortage and ensuing record price spikes has led Americans to seek alternative means to fulfill their appetite and their baking needs. You're never gonna guess what this is. You can actually do, George, a rent a chicken coop.

Yes, your face is exactly right. Your face is exactly right. They will bring me an actual chicken coop like the wire fence and everything to my house

so that I can have eggs. Yes, everything that comes with it. I mean, they will come, they will deliver it. They'll set it up. They'll help you set up these chicken coops. They come with a certain, you know, you can decide how many chickens you want. So for instance, for this one, let's see, you can get two rent a chickens. So you get two laying hens. You get eight to 14 eggs per week, a standard chicken coop, a food dish, a water dish and 100 pounds of chicken feed. Plus your quick guide for taking care of your rent a chickens. Oh my goodness.

And this is, oh my gosh, $485. Oh my goodness. For six months. Hold on. So over the six months, you pay $485. This is un... That comes out to about 80 bucks a month.

Hold on. This is un... I don't think that math is math in, George.

That math ain't math in for eight, than for eight. So here's the deal. If they're saying you're gonna get eight to 14 eggs per week out of this, let's call it a dozen for easy numbers, right? Yeah. A dozen eggs per week for 80 bucks a month. That's $20 for a dozen of eggs. Yeah. No, I told you it ain't math in. This is fun as like, I guess if you get kids and they want to know what it's like to be, you know. Sure. To farmer Joe and get closer to the food you're eating. That's a beautiful thing.

But as like a hack for inflation,

this is the worst hack I've ever heard of. Sure. To farmer Joe and... It's just a project. Do you kind of know what this reminds me of? It reminds me of when people are driving their car, right? They've got their car, they're driving along and the car breaks down and they're like, oh, I take it. I got to get it repaired. And they don't want to pay the bill to get it repaired.

So they just get a new car.

Oh yes. That's kind of like this. I feel like it's, oh my gosh, chicken prices. You know, I don't want to pay the two to $3 more. Let me just go buy a whole chicken and a whole coop. This does not make sense.

It doesn't make sense.

They also have like an elite package, which is 1385.

The old McDonald's special. $1,385. You get a fancier chicken coop

and you get 16 to 24 eggs a week.

I don't even know. I just looked at my local, like there's a little fruit grocery store nearby called Sprouts here in Franklin, Tennessee. And I just checked on their page, how much eggs are going for.

It was $3.39 for a dozen of eggs.

It's really not that serious, George. And I even looked at like, okay, what are the really bougie expensive, you know, the chickens had a great life. They saw the sunshine. They took them to Disney world. They laughed, they cried.

Even those eggs were $8.99. You know what? I think it depends on where you go.

Cause I know in some States it's like super high. You know who always comes at us is Canadians. They're always like, well, in Canada eggs are $19 for, and I'm like, listen, I can't speak to Canada. Y'all are, you're all are doing things differently out there.

You got poutine, your prices are out of whack.

Not poutine, George. I'm not coming after poutine.

I'm just saying they do things differently. Well, here's what, here's what I want to get to. I feel like in the economy things happen and we just go to extremes. Like remember in like 2008 gas prices were crazy and everybody started buying smart cars. Oh yeah. Like those ridiculous teeny tiny cars. And it's like, this is the solution to our problems. A terrible idea. Or people just like freak out and start buying a bunch of gold. And I'm like, now the eggs are expensive. Let's just, we're buying chicken wire. We're buying whole, whole chickens, whole coops.

This is a symptom of something deeper. If you're really frantic, right? If you're really freaking out about this, if this egg shortage is and the price increase is if it's breaking your bank, there's something further beneath the surface there

that needs to be, like surface there that needs to be. Well, here's the thing. You're complaining about egg prices going up 50, 60%. Okay, that amounts to three bucks for a dozen of eggs. That's probably 20 bucks max a month for y'all. But then you're okay sending a lender 500 bucks for that car payment. And you're okay sending Sally Mae 400 bucks over here for your student loan payment.

There's a problem. Let's look at the real problem.

There's a problem. Let's look at the real. It's your debt. It's not the eggs, folks. I never thought I'd have to say that sentence out loud. Yeah, it's not the eggs. You will overcome this. It's your debt. We will survive the bird flu egg shortage of 2023 and you can become debt free and create margin in your budget. And then you're not really all that concerned about egg prices. You just adjust the budget and move on with your life. Sorry, we had to explain that to you guys.

Oh, George. Here we go.

As my dad joke for the day, this is the Ramsey Show. Yeah, it's not the eggs. You will overcome this.

It's your debt. This is the Ramsey Show. I'm George Campbell joined by Jade Warshaw this hour. Hey, if you're a homeschool parent out there, you've already got a lot on your plate, being both a parent and a teacher, but you don't have to add money expert to that list to teach your teens how to win when it comes to money. We've got a brand new foundations and personal finance homeschool curriculum where our personalities teach this complex money stuff for you. They'll cover real life skills like how to budget, save, invest for the future, and your kids will learn everything you wish you'd learned about money when you were their age. Plus, the curriculum comes with everything you need to make your life as a parent and teacher so much easier. You're gonna get lesson plans, activities, transcripts, everything's already created for you so you can focus on raising teens who are confident about money and prepared for the real world. So if you wanna check this out, foundations and personal finance homeschool curriculum, just go to ramsysolutions.com slash homeschool to learn more. ramsysolutions.com slash homeschool. Good stuff there. All right, let's go to the phones.

Kelly is in Brookfield, Ohio.

Kelly, welcome to the show. Hi, George. Hi, Jade. Thank you for taking my call.

No problem. Hey, happy to do it.

How can we help today? We love the Ramsay show. So I'm calling basically about my boyfriend and he has done a great job at saving and has made huge changes and I'm gonna tell you about them. And I believe that he can be debt-free this year, including his house. And he wants your opinion on what to do with the money

and I wanna see if it matches what I say that he needs it. Ooh, this is a fun game. It is. Okay.

Hit us with some facts. Okay, so right now, actually, he has made huge changes. Like he even bought another vehicle for cash that was 16.5 and he has a Jeep that he's going to be getting rid of. So it's amazing. So right now in the bank, after he bought this truck, he has $66,899, okay? And he has consumer debt, which is his Jeep, a student loan and a tractor that is $45,060. And when we were talking about this, I said, I felt that he should go ahead and pay off all that. And he's like, well, I don't wanna pay my Jeep off because I wanna sell it and I'm gonna be selling it before June. And that's where I feel like maybe you guys could help with that. And also he has a student loan that has like 10,000 left on it. And I'm like, he thinks he, or he's hoping for like this forgiveness.

And I'm like- Oh, no. Kelly, Kelly, Kelly, there's some issues here. Okay, so he has the money. He could pay this all off today

and still be left with $21,000 in the bank. Yes, and that's actually more than his monthly expenses. Like his emergency fund,

I think should be about $10,000. Yeah, he'll be just fine, but he wants to hang on to this debt. So does he understand that when he sells the car,

he has to pay off the loan anyways? Well, say that again.

I'm sorry? When he sells the car,

he has to pay the loan to get the clean title. The Jeep, yeah, he would, but he's thinking he's just gonna pay it off like when somebody pays him. Because he thinks,

I'm pretty sure he has about 10 to 15,000 equity in this Jeep. What happens when the used car market keeps on dipping and all of a sudden he's underwater while he continues to make these payments

on a vehicle he's not even using? Yeah, like he, I don't know.

That's why I'm like just talking to you guys about it.

I wanna know, I wanna know where is he at? Well, you're saying you wanna see if his advice matches ours. Our advice is obviously to pay this all off today, be done with it, free yourself of those payments and the stress related to all of this debt and move on with your life. It's the simplest solution of all time.

He's got the money sitting there with plenty left over.

How long have you guys been dating? For like 18 months. And he honestly has made huge changes. Like he doesn't get coffee every day. He, like we don't go out to eat near as much.

Like we- So you feel like you're influencing him

towards a positive direction financially. Yes, yes, absolutely. And I feel like he should just go ahead and follow these steps, but it's like he wants to not let go of his savings. He says, he's like, I've never had that little bit of savings ever. And I'm like, but after you pay those payments off and all that debt's gone, look how-

Well, he has the illusion, well, he has the illusion that he has $66,000 but really he doesn't

because he owes people a whole bunch of money.

Is he interested in Financial Peace University?

Honestly, I was a coordinator and I've had him watch it. He's watched all the lessons

and he still wants to hang on to the debt. I feel like it was in just him and I having watching the videos and maybe it wasn't super impactful at the beginning because maybe he didn't feel like it was as important.

Would he go back through it again?

When'd you guys go through it?

Actually, just a couple of months ago.

Oh boy, it did not stick. So it's, I just have to ask, are you kind of trying to, you're trying to see is this guy marriage material if you guys can get on the same page of money and you're really trying to see, man, I hope I can get him.

I hope you get him too, but you know. I think the thing is is he's just, he makes a very good living and our incomes are not combined. Of course. And I think that you could literally have your house

even paid off by the end of this year. I don't think he wants that. He doesn't have much vision for his future. He's hoping the government's going to take care of him

based on what you told us wants that. That's the thing, we agree with you Kelly, but your guy, he's got a whole different methodology in his mind. And I think it's admirable that you're trying to show them this, that you're giving them information and that you're teaching. You can lead a horse to water, but you can't make him drink, and you can just keep setting that bowl out there for him. And maybe, eventually, he will,

but you need to set yourself a time limit. And then you might need to sell the horse. I know. That's right. He ain't gonna drink. Get you a stallion.

Very controversial advice. You might need to sell the horse. I know, that's right.

He ain't gonna drink. Get you a stallion. We actually have another meeting set up with an investor pro, which I contacted and we're gonna talk with them because he wants, like his top priority is to pay for retirement. And I said, okay then, you have your emergency fund already in place. Now you need to start putting your full 15% because he right now is only doing three

and his passing back is zero.

He needs to be doing zero until his debt has paid off. Yeah, Kelly, you're right, you're preaching to the choir! You're preaching to the choir here!

You're preaching to the choir, you're preaching to the choir here! Here's some math that you can do with him. add up all of his payments plus interest and said, hey, what if you invested that over the next 30 years? And just show them what that number would turn into. Okay, okay. Because that'll put his money where his mouth is. If he's saying I really want to invest for the future, imagine a life without payments and repurposing that money instead of throwing it to lenders, he throws it to his future. And if he still doesn't care, then he's lying.

He doesn't care about his future. Or he just wants to do it his way,

which we think is the wrong way, think is the wrong way. I know, and I do, I have to say like he has done really well for himself, even though-

You can out-earn your stupidity. You can out-earn your stupidity. Plenty of people do it. Yeah. He can keep making money and he, you know what? He can still have a fine life. But right now your values are misaligned. And it's a red flag for sure. I'm not saying that it won't work out with this guy. I hope it does. He sounds like a great guy. We're not here to bash him.

He's very normal. And you have decided to be weird. And it's hard for those two to be compatible. We need to have two weird people if this thing's going to work. Mm-hmm. Uh-huh, uh-huh.

If I'm you Kelly, I'm taking this advice. I'm going to give it a couple of more, give the old college try and keep trying to feed him. Like George said, like do the math, like sit down and look at this thing, but then give yourself a time limit and go, if my guy doesn't, if it seems like we're not aligned on this area, start digging deeper and see if there's, you know, see if it's worth you going forward with this, because this is something that is going to be critical if you guys go forward with getting engaged

and even onto marriage. And dig in and ask him, hey, why are you hanging on to this? And if he goes, well, the student loan, show him the stats on student loan forgiveness. It's bleak. Show him how bleak it is in Congress trying to get this thing through and how little chance it is of him getting a student loan debt cleared completely. It's not going to happen. And so you can go back through FPU, you have access to it still. So I'd go back through it with him and say, I'm going to give this one more college try, buddy. And I really want to make this work, but I need you to show me that you really care about our future and what it relates to money. So thank you for the call, Kelly. It was a fun one. And thank you all for listening to this show, America, that puts this hour of the Ramsey Show in the books.

My thanks to Jade Warshaw.

All the folks in the booth will be back real soon. Hey, what's up, guys? It's Jade. If you love the show and want a deeper dive on your money journey, we have a weekly newsletter that gives you trending and helpful articles and tips on following the Ramsey way. Just go to ramsysolutions.com today to sign up for our newsletter. Again, that's ramsysolutions.com

to sign up for our weekly newsletter. Hey, it's James, producer of the Ramsey Show. This episode is over, but check the episode notes for links to products and services you heard about during this episode. Thanks for listening.

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