Dave Ramsey is a financial guru who has written many bestselling books that have helped people master their money and get out of debt. He takes callers on “The Ramsey Show” and recently spoke with a 53-year-old widow about relocating for a higher-paying job.
The widow has endured a lot. She has been raising the kids alone for 25 years, and they are now adults. Furthermore, she has $120,000 left in student loan debt because she went back to college to help the family. However, she was unsure if she should move away from the family for two years to pursue a great opportunity. That’s when Ramsey asked a profound question that put it into perspective.
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“What’s the return on the effort and what’s the timeframe?” he asked.
As the opportunity and time commitment became more clear, Ramsey became more supportive and suggested that she pounce on the opportunity.
One of the reasons the widow called was to verify if her actions were motivated by a love of money or another reason. She is a Christian and wanted to make sure the love of money wasn’t driving her.
Ramsey explained that she is driven by becoming free from debt instead of a love for money. He also mentioned that the clearly defined two-year time frame supports that idea. Greed can ruin relationships and lead people down dark paths, but there isn’t any greed in this case. She has been trying to make ends meet for 25 years while supporting an entire family on her own.
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Ramsey said that it’s worth taking the opportunity for two years since it will allow her to break free from the financial struggles and hardships of the past 25 years. The widow also mentioned that the kids are supportive of her goal, and they can earn money for themselves since they are adults. This situation would be a bit different if the kids were still dependents, but that’s no longer the case.
“I don’t blame you,” Ramsey said when the widow explained her plan.
The caller revealed that the new job grosses $95,000 per year and is a more affordable area. She is going to rent a room from someone to minimize her costs, which will make it much easier to save money. However, that’s not even the best part about the new opportunity.
The company has agreed to pay off $50,000 of her student debt for each of the two years. That means she only has to put $20,000 toward the debt during those two years to become free of student loan debt. She also has $8,000 in credit card debt, which she incurred this year. Ramsey stated that it is realistic for her to pay off her student loans and credit card debt before she returns home.
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Not only can she get out of debt, but if she keeps a tight budget, she can start to build savings. Then, she will have more flexibility when she retires and won’t have to rely as much on Social Security. She’s 53 years old, so she has time to earn money and build a nest egg. That will get much easier once she can finally walk away from her student loan debt.
Not only does this move make great financial sense, but her motivation is also sound. She wants to spend more time with her grandchildren. Getting out of student loan debt in two years will make a lot of her money stresses go away, and she can be more present for her family.
It’s a short-term sacrifice for a significant long-term gain. Her children are supportive, and she will be ready to spend time with the grandkids when that time arrives. Life has different cycles, and this two-year stretch is the widow’s opportunity to put her finances in a solid place.
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This article A Widow Considers A New Job To Pay Debt. Ramsey Digs Deeper: ‘What’s The Return On The Effort And What’s The Timeframe?’ originally appeared on Benzinga.com
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