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Financial Freedom Requires Sacrifice but It’s Always Worth It!

The Ramsey Show

Fri Sep 22 2023



Financial Freedom by 30:

  • Caller is 19 and wants to be financially free by the age of 30.
  • Currently working part-time as a server at Fat Olives, making $40,000-$50,000 per year.
  • Full-time student studying construction management at NAU with a full ride scholarship.
  • Considering dropping out of college to work full-time and pursue financial freedom.

Advice on Dropping Out of College:

  • Jade advises considering long-term goals and what career path will lead to fulfillment and financial stability.
  • Encourages thinking about the type of life desired at age 30 and reverse engineering steps needed to achieve that life.
  • Recommends assessing whether being a server aligns with long-term goals or if there are other career aspirations in mind.

Importance of Education:

  • John highlights the value of a free college education through the full ride scholarship opportunity.
  • Suggests taking advantage of learning opportunities within the construction management program, even if not passionate about it.
  • Emphasizes using education to build knowledge and connections in various fields related to construction management.

Avoiding Hasty Decisions:

  • Caution against rushing into real estate without proper knowledge and experience.
  • Advises focusing on personal growth, completing degree requirements, gaining industry expertise, and saving money while still young.

Acknowledging Current Success:

  • Recognizing caller's accomplishments at a young age: no debt, two paid-off cars, savings account balance of $6,000.
  • Encourages staying on track with current achievements instead of feeling pressured to make major changes immediately.

Car insurance:

  • The user's mother suggested putting the car insurance payment on a credit card, but the user has chosen to cancel all of their credit cards and wants to know if this is the right decision.
  • The user already has car insurance through Geico and does not want to go into debt to pay ahead for six months of coverage.
  • It is important for the user to have car insurance but also avoid going into unnecessary debt.

Selling house or renting:

  • The user currently owns a house but will be moving to Oklahoma for training as an air traffic controller.
  • They are considering whether to sell the house or rent it out during their time away.
  • Selling the house would allow them to offload stress and responsibilities associated with being a long-distance landlord.
  • Renting out the house while living far away could be challenging and require hiring property management services.
  • The user plans on getting a 15-year fixed-rate mortgage in the future, which supports their decision to sell rather than keep the house as a rental property.

Canceling credit cards:

  • The user canceled all of their credit cards, including one that had been used for car insurance payments in the past.
  • Their mother expressed concern about not having any open lines of credit and disagreed with the decision to cancel credit cards.
  • The user feels conflicted because they value their mom's opinion but also believe that avoiding debt is important.
  • Trusting oneself and making decisions based on personal research and understanding is crucial.