Hello

Live from the headquarters of Ramsey Solutions broadcasting from the PODs moving in storage studio. This is the Ramsey Show. We talk with you about your life.

Specifically your money to work in your relationships. I'm Ken Coleman. James Worshaw joined through this hour. The phone number is toll free for you to jump in so the weekend coach you and encourage you.

Triple eight eight to five five two to five that's triple eight eight to five five two to five let's go to chase who is joining us on the line in Austin, Texas chase how can we help?

My question was I was in debt at one point use the baby steps got out. I actually sold pretty much everything and worked. The jobs were like you work and where you work you live so like resilience and stuff so you're pretty much able to stay in your entire paycheck.

I was able to get out of all that consumer debt. Now I'm in school and I'm fortunate enough I've been able to pay for the school and I've chosen to take on additional student debt that I don't need at zero percent interest and I'm putting it into CDs.

So I'm getting four and a half percent on it but it's liquidable.

So I was just curious is that a good idea or is that is it just debt always bad?

I think it's a bad idea. You've got debt now and you've got the risk associated with it. Why wouldn't you just take your own money and invest it in mutual funds and get a 10% rate of return?

And then not carry any debt associated with it.

So I'm doing a little bit of that as well. Not in mutual funds but I'm putting money into a private equity debt fund but it's liquidable as well like a mutual fund but the student loan because it's in a CD I mean unless they're not FDIC insured.

I don't think they can collapse. So my question was like it looks like I'm carrying hold on.

Hold on. Hold on. Hold on. Hold on. Hold on. Hold on.

Hold on. I'm interrupting because Jade asked you a very good point playing question that you didn't answer.

You sounded like a guy running for Congress so that was good. I'm very smooth. How you redirected but why answer her question?

I think you called us and she answered your question with a question. And so her question is basically saying yeah okay you're getting 4.5%.

Woohoo. But you borrowed to get that. Why not do what she just said. If you're doing it a little bit over somewhere else why wouldn't you do it across the board with this money?

I know the answer. Well I want him to answer. Why wouldn't put it in a mutual fund?

No my question is here here's I'll answer the question that I asked you for you. You want to get rich quick. That's why you that's why you're borrowing money that honestly supposed to be used for education and you're putting it in CDs of all things which if you were going to do it I'd say at least go all out and invest in a better vehicle but it's like betting on a snail.

The point is you're trying to get rich quick and that's going to lead to folly because there's no such thing is get rich quick. It doesn't it doesn't work out and if it does honestly you're just lucky.

It's not because of common sense it's not because of good sense and we're seeing that more and more we're seeing YouTube and Instagram and TikTok crazes where it's like leverage there is such thing is a good debt and we use it good it's called leverage and that's why you're using it.

And that the Cartles and leverage and Dada Dada Dada and those equations never equate for 2 really important things they never equate for risk can.

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