How Do I Get Out Of This Financial Mess I Made?
ฝัง
- เผยแพร่เมื่อ 15 ก.ย. 2024
- 💵 Create Your Free Budget! Sign up for EveryDollar ⮕ ter.li/6h2c45
📱Download the Ramsey Network App ⮕ ter.li/ajeshj
🛒 Visit The Ramsey Store ⮕ ter.li/7vyom2
📞 Have a question for the show? Call 888-825-5225 weekdays from 2-5 pm ET or send us a message ter.li/n88ly5
Explore More Shows from Ramsey Network:
🎙️ The Ramsey Show ⮕ ter.li/ng9950
🍸 Smart Money Happy Hour ⮕ ter.li/9gcp3d
🧠 The Dr. John Delony Show ⮕ ter.li/2u3mc0
💰 George Kamel ⮕ ter.li/1elws8
💡 The Rachel Cruze Show ⮕ ter.li/n2u6jc
💼 The Ken Coleman Show - Highlights ⮕ ter.li/1rbjr2
📈 EntreLeadership ⮕ ter.li/ktxv2k
Ramsey Solutions Privacy Policy
www.ramseysolu...
I'm beginning to understand why he was fired from doing business and operation strategy
I work in tech and how he described himself are the kind of people who drive my crazy. Clipboard holders and box checkers.
He was laid off not fired, he received a severance package, had he been fired he'd be out the door with squat.
I would hope you learn the terminology difference, my husband is in Tech as a software engineer and was laid off with a 6 month severance package, he started back to work May 1. Read that as 5 month if only severance income coming in, it was getting scary there for a season.
@@jwlsngold5026 Who gives two fucks how you spin the terminology. Your husband got shit canned. The company decided he was too retarded to be bothered with any further, and they terminated his employment. Just because they politely gave him some extra money to go away means nothing. If they offered it, and it was on a signed document, they are legally obligated to provide it. No matter how they dangle the carrot for the employee to sign on, the end result is the same. His ass was fucking fired!
"If you want to survive in business, you can't be a victim!"
He can't make money on the grooming biz because he's not in there working like the previous owner. The 120K was only if he was a groomer working 60 hours in there himself
The employees saw him coming a mile away.
I agree with Dave that this guy is not equipped/ready to manage a small business.
Dave’s number 1 rule for investing is don’t invest unless you understand it that goes on every investment you can make
My thoughts exactly. Literally sold his future away over something he doesn’t know the first thing about.
So true ! It's almost like this guy bought a mystery business just for the fun of it, and after the fact discovered it was a pet grooming shop.
While he's right about needing to be the one in charge and lead a a business owner, if this dude doesn't even work there and after his employees got raises he's still clearing 70K in passive income, that doesn't sound horrible to me lol.
Exactly, although it depends what his sales are. I would keep the business as long as sales are steady or increasing. Also what is he doing with profits? He could pay the loan off in 3 years.
But that $70K goes towards paying the $209K debt.
The problem was in the 'why' the income has gone down... His language was very passive, and surprised his employees required higher compensation for an owners less involved. (Typically that's take care of on the purchase price side) Dave correctly sees this business performance getting worse with that mindset.
Yeah, I have no idea if the wage advice was good or bad without knowing the specifics of the business, which is why a five minute radio spot isn't great for diagnosing problems or giving financial advice.
$70k/year in free cash flows to an absentee owner is a great result and should easily resolve the SBA loan. On the overall financial picture, as an individual he's carrying way too much debt for how much money he's made. It would be wise to pay off all the personal loans and debts as soon as he gets a new job.
@@megalodon1726 In a few years he'll pay it off and start profiting while having his full time job.
Dave "Oh you can definitely find a hiring paying job"
Also Dave "Fire all those employees for demanding more money" 😆🤦
Exactly
this is Y UNIONS are needed !!!
He can negotiate his salary for a potential job as an employee, but he poorly negotiated and gave into the demands of the pet groomers, as an employer. This drastically reduced his revenue and value).
Yes he should. The employees don’t get to tell the owner how to run his business. They were paid a certain way before now they are running game if they want increases they better work and bring in the money. Smh.
@@mba2ceoUnion thugs are the ruination of the country.
Fire them for asking for market rate ?
Good luck in finding new pet-groomers for less than market rate …. People want to take their pets to the groomers they’ve been seeing for a long time, just like your barber. Changing staff would tank the business.
Worst advice ever seen on this channel.
Im a Dave(ish) fan except for certain things. But 2023 Dave makes different decisions than 1990 Dave would have because he "made it" and has a nice nest egg if stuff were to hit the fan. He speaks as someone who has a cushion, and his callers have NO cushion. When he was starting his radio show, Im pretty sure he would have done some "woke" things to build his business that he wouldn't do today. Every man gets grumpy with age, especially if you still have to report to work in your 60s like him, thats human nature.
Goes to show you how little he pays his employees.
Right. Same thing I was thinking. I went to a grooming place for one person. If she left, I would move to the new place. Same with hair dresser.
You don't borrow money to buy a business. That's the point. He needs to run his business, not the employees.
My hairdresser is an artist. She really has a gift.
Jade giggling is hilarious. I love her 😂
She's realizing she works for a devil
@@Tunechi65 And
I'm $280K in debt, but I have no credit card debt.....................LOL
😂
Fire people in order for one guy to get out of a "bad" financial situation. Good advice Dave....
It's his business. He's broke. When he can hire more people, he can. Until then, fire them.
They poked the bear and now they get to find out what happens.
@@TheSonyExperience He can, but he doesn't sound like a dog groomer, lol
This call is a garbage fire from both advice and caller perspectives sheesh
If the employees of that business follow the baby steps, they will be okay.
Dave is right. I lost $400k learning it. Fortunately I could afford it by using money I had and not debt, so it didn't really harm our long-term prosperity. Having learned my limitations in that arena, I now confine myself to passive investments and apparently I have pretty good discernment there because we've made it all back plus. An axiom--"Ya pays yer money and ya takes yer chances."
When I was 22, I had similar dilemma. I use to go to this restaurant and loved the workers, unfortunately, I saw pretty harsh work condition for them and owner was fighting with themselves !!
I helped these workers here and there till one day one of them told me, that the business is not profitable because owners didnt know how to run.. Business was actually in great location, tonnes of customer for proper branding etc. So I saw an opportunity !! a huge one, and almost went for it.. I would have made huge money on that have I done that I believe...
But I didnt.. for the following reasons and which is why I think I am prolly fine
1> I was too young, naive and didnt have time or knowledge of restaurant business
2> I had a pretty nasty fight with the owner who saw that I might go for it !!
People like paul and me has one problem. Working in tech and young, influx of $$ is too much for the age and so we wanna put that $$ on the market to make more $$ ( in pauls case ) and to help people ( in my case ), but often we are hind sighted !
If he starts firing people who want market rates, I hope they all catch on and quit at the same time.
I was thinking the same thing. I know nothing about business, but it sounds like he'll still profit $70k? Is that after expenses or gross? So he still profits AND his employees get a fair wage. Oh the horror.
@@speeddemon0712 Shitcannem all
Y’all don’t own business and don’t know how it runs. And he said they wanted a commission at market rate, not their hourly pay! That’s not how commission works
But why were they making different under the previous owner? What justifies this huge change all of a sudden?
The only person that would benefit is HIM, rid of morons who do nothing but cost him time.
Why didn't people keep paying on their student loans? My daughter never stopped and paid hers off during the Covid scare. Stopping your payments was a stupid thing to do.
she's the exception, everyone wants something for nothing (democrats), pay our bills and hold your head up!
@@freebird7284 My son is still paying on his, but he'll be done soon.
Smart young lady!
Well, which one is it Dave. Is it super easy to find high paying work, or are you supposed to fire workers who want high paying work.
I hope if he starts firing people for asking for market rate wages all his employees quit at the same time and his clients follow them.
I didn't hear how many employees are at this shop, but my guess is that once one person is fired, they'll all quit. Pet owners are very attached to their groomers, and they'll continue using the same groomer on an independent contractor basis.
Let them quit! They will be replaced. 🤷♀️ why couldn’t they do that before. They want more commission but they are not bringing in more money?
If they want commission, i might increase base prices to get the business back up to what it was before. Its incentive for the groomers to increase business as well. I make more and so do you.
@@shachede6828except they won’t be replaced at under market wages
@@shachede6828ah I see you're as evil as Dave. Cry baby
I thought Dave wasn't corporate America. The advice he is giving here is exactly what corporate America is all about.
It's insulting when Dave tells tech people who just got laid off that they'll find a job in no time making even MOAR money. He always does this. There are a finite number of jobs. You can't just will your way into a better job. Layoffs are happening for a reason.
It's comical when people capitalise words that are spelled wrong.
@@amireallythatgrumpy6508 Wait - do you think that I think "moar" is the correct spelling of more?
@@robloxvids2233 No, I don't think that you think at all.
@@amireallythatgrumpy6508 Well, from the way you spelled "capitalise" with an 'S' and not a 'Z', I can tell you aren't American. All I can say is...USA BACK TO BACK WORLD WAR CHAMPS BABY!!!
@@robloxvids2233 That's the lie you told yourself? The reality is the moment a war begins, everyone involved has already lost. There are no winners in a war.
There Dave’s hubris and overinflated ego goes again. If they’re asking for market rate, feel free not to give it but there’s no barrier to just leaving and getting it somewhere else since it’s MARKET rate!
Lol dave basically said to fire all employees because they ask for living wages/market wages. What a great guy Dave is!
If his business starts to lose revenue and he's not getting a return on his initial investment, he'll have to shut it down. Will they still be getting paid their "worth?" No, they'll be paid zero and have to look for work elsewhere. If they don't like the pay, they can also go look for work elsewhere. Lastly, it he has to sell his business and the new owner wants to make a profit, he'll have to cut workers or cut pay or do both! Which means... Ding ding ding, they'll be looking for work elsewhere. When times get tough, blaming your situation on someone else means you don't have control of your life.
Dave is a boss not a leader.
Holy smokes he was doing so well before he bought a bad business on large debt.
They saw that their new owner was in his 20s and on top of it, he doesn’t even know how to groom himself. I’m sure that rubbed them the wrong way, but unfortunately he just needs a new fresh crew.
Please let Jade talk ! She is so smart. Dave hogs the stage when he is on. Let your people grow and develop Dave. Your show will be so much better. You won’t be around forever.
He'll be around for another 15 years
@@amireallythatgrumpy6508he won't be around much longer with all his lawsuits
Why would you even write this it's so ugly this is a clip watch the whole thing plus Jade is dying laughing off screen that's why they cut to Dave's face so much I don't work in film and even I know this it's kinda like SNL really it's not but it's like Fox back in the day they "Do It Live" oh and I don't know if you know it's called the Ramsay show I think he figured out that part of his business I'm sorry but your comment was rude and mean and bad advice for the Ramsay show
I am so sick of people with thousands in savings that carry debt.
Why? I do. Car is on a 0% loan and mortgage is 2%. Meanwhile my savings account is getting 5%
Guilty on both accounts.
@@siva47931 that isn't the normal.. gold star for you 🌟
@@katyedwards3935 mortgage 8%, cards 22.99%, savings 0%
@@siva47931nice very smart
Yeah good luck restaffing it, dave has no idea how hard to hire someone good right now, and the old owner probably under paying the workers before
1. Tell everyone you are going to monitor progress of each worker.
2. Fire the bottom 10% of producers the next month.
3. Fire the bottom 10% of producers the next month.
4. The others will get in line.
5. Fire the bottom 10% of producers the next month.
5. Now hire 2 new people.
6. Fire the bottom 10% of producers the next month.
Now sell your well running company for a profit.
Lol, you know absolutely nothing about running a business.
So he has employees with a skilled trade, and they ask for market rate, and Dave says fire them? That makes no sense, good luck trying to run an electrical company and all of your electricians and pay less that all other electrical companies you business would die on its own because no one with brains and dignity is going to work for less than what they are worth, or what the next company is ok paying them.
Sounds like the caller is an employee type not an employer.
no, the old owner may have cornered. then and once you learn better.
The cost of living shot up. What he could have done is increase prices 10% and give them a 10% raise. If that wasn't enough they could leave. Or more incentive bringing in more sales.
so he could break evener?
Absentee owner didn't have the balls to negotiate properly with his employees and they increased their income just like Dave says to do.
I love seeing these pop up as soon as I get off my night shift
Yup! How did he let his employees bully him like that??? Run it how it was ran! Smh! He better get it together! Smh yes fire them one by one. Fire the ring leader and the rest will get it together
Great context! Quite spot on. Everyday I see more reasons not to be dependent on this shitty government, I believe investing in various sources of income that doesn't depend on the government should be the most important thing on everyone’s mind currently.
I believe the global currency reset is already happening, in no time the physical cash will be useless as the current banking system is crashing, not even the IRA will be excluded. I'm putting my funds off the banking system and have them regulated into the New Financial system (NFS) through the regulated digital tokens that are backed up by precious metals like gold and silver.
I will be working less in few years and I'm curious to know best how people split their earnings, how much of it goes into savings, spending or investments. I earn good amount per user bur nothing to show for it.
@@PatriciaL.Shelton
your income is stagnant when you save, I will advise you buy stocks with market-beating yields and shares that at least keep pace with the market for a long term. And for a successful long term strategy I recommend you seeks the guidance broker or a financial advisor.
glad to have bumped into this conversation. Please can you leave the info of your advisor here? I’m in dire need for one.
advisor I’m in touch with is KristenAmandaTate, she works with RBC capital markets and interviewed on CNBC television.
I love Jades skin complexion 😍
Right she got the nice smooth caramel skin, just beautiful
with his tech job income normal potential over 100k 70 grand from a side business sounds ok if the loss makes his workers happier
How did you solve another’s problem when you can’t your own?
I find it funny that the initial debt picture was something he could have just taken care of once he was employed again, but then he finally opens up about the debt that's bigger than all of the rest combined.
What was even the thought process? It just seemed like he was somehow convinced he could just borrow heavy for a small business he knew nothing about (including he never apparently groomed a dog in his life) and he would already start making money without really having to put much work into it.
But then again that's why these stories end up on Ramsey, because ultimately we all (even Dave) make dumbs*** mistakes at some point in our lives. Hopefully this all gets straightened out.
Kid's not a businessman
And this guy is in "technology business strategy".....😮
Who lets employees set pay rates? This makes no sense. The guy has no business acumen. I agree baby step one is to get rid of current employees. Like yesterday.
He needs to fire people and hire a good manager a backbone and knowledge
Old owner knew he had an employee revolt coming and decided to unload the business on a sucker.
Delete tiktok dude.
Dave is naive about making more money in tech for a new job compared to last year this time. This is coming from somebody who has worked in FANG.
What's the difference between credit cards and charge cards? I'm used to them being synonyms mostly, except charge cards are usually specific to a particular store or group of stores. Anybody have any idea what he means by charge card?
I think he's just playing word games honestly
He just meant he pays it off each month, like an American Express card. A credit card allows you to carry a balance. I have credit cards but treat them like charge cards. Honestly I was surprised to hear a 29 year old use the term. I haven't heard the term used in a long time. It's more of a Boomer/American Express card. Boomers used to brag about how high their "AmEx" card limit was. Or what color it was. Lame.
For Baby Step 1, the emergency fund of $1,000, where do we keep this? Should this be in an account at our bank, or should we have this $1,000 in cash so we can grab it quickly when needed?
Should have it in a high yield savings account or money market
No cuz it has to be liquid so you can use it if needed.
Savings yes. Money market no
High yield savings account, I personally prefer to set it up in a separate online bank I basically never look at but would be able to access/transfer out of in an emergency. Having it out of sight/out of mind + the minor inconvenience of having to transfer it and wait a day or two helps keep me from thinking it's spendable money
Paul sure does have alot if debt..only if he could just leverage it correctly.
Don't agree with Dave all the way here..sure you can hire cheaper help..that comes with a price too
don't buy a biz you have very faint idea about
He has the cash pay it off
He could have not started the business from the ground up. It would have costed a lot more.
Trying to hire people for a niche service is hard. Also hard to find clients who would switch for their regular person.
There's no such word as "costed". The word is "cost".
@@jimroscovius verb
past tense: costed; past participle: costed
@@catherinep2034 No, it's "It would have cost a lot more".
@@jimroscovius check your dictionary, or google. It does exist, you just don't like it used.
@@jimroscoviusThe period goes inside the end quote, genius.
Its a real pity! With such a good career in tech, he should have just made do with investing in the stock market, and taking the rest of his money and building his savings! Not everyone is designed to be an entrepreneur, sometimes you got to know your limitations - we all have them!
Buys a business, then employees dictate how much they should be paid. Sounds like union folks.
People so mad in the comments lol
Look the employees said "We will continue to work for you IF you increase our pay, if not you will lose us as employees"
How in the world is that anything but capitalism? If the business goes under without complying with their demands for higher wages it means they were being paid UNDER market value and they adjusted accordingly.
Could it be that he negotiated poorly and could have negotiated a better deal? I'm sure, but that's also part of the free market isn't it? Negotiating your wage is one of the most powerful tools you have to increase your income, Dave talks about that all the time, but he doesnt like it when it actually happened? lol
This guy LMAO
Who the fuck buys a grooming business with a loan and no experience?
I own a Pet grooming shop here in New Jersey. Paying them an hourly rate is you being a scumbag!!....Commission is the only way they should be paid.....If a dog comes in and its $50 for the groom, $25 goes to the shop and $25 goes to the groomer tat did the work!
Grooming for pets near a recession.
No way
Paul can might want to consider a new phone.
This is the worst advice I've ever heard. People go to groomers they trust. Get rid of your regular groomers and you'll lose half your customers. Then if you hire cheaper inexperienced groomers, they are going make mistakes and you'll lose your whole business.
The only person who should buy pet grooming business is someone who's worked in the industry. This guy shouldn't punish the community because he wanted to make money being dumb.
Groomers will screw you over! Know what you’re really doing and be there!
SBA EIDL loan saved our family business during the pandemic. 3.75% 30yr loan, we will kill it off in one more yr!
I guess regular sba loans are not as good
✝️🙏
He loses his job as a business model guru.
Ruins the business model of the business he bought.
Idk if you can blame the government for this one lol
Where is Mr. Wick's comment?
😂
Why did he buy a business he knows nothing about he must be book smart no street smart I whould not listen to nothing he will tell me
Most people are neither book smart nor street smart.
Dave constantly saying you'll make "more" is so laughable. Incomes don't always go up, Dave! Wake up!
It goes up if you make it go up
It's called having a bargaining chip. If the skill you bring to the job is highly in demand, and when you also consider there is a labor shortage, comp is one of those things that can be negotiated ideally in the favor of everyone at the table. A prospective employee can always keep fishing if the pay is not sustainable.
That being said, the caller may also lose some leverage at the table because of the need to find work quickly and take care of his debt before the emergency fund dries up. So yeah, in that case he may have to go for a lower pay albeit for a season.
Dave: "You'll make more!"
Also Dave: "They wanted market rates? That's the problem. Fire them all systematically."
Wonder how often Dave give raises?
Oh to be delusional
Everything 209 is badd. Ed 209, his debt and the area code.
He sounds like Vitalik Beturin the founder of ethereum 😮😮😮
SO Dave is saying it's OK to pay employees less, and not a living wage?
He is making a profit. I would not sell it. It takes time to make it bigger.
It's not any employer's responsibility to pay any employee a 'living wage'.
@@kasessionthen they shouldn't be crying when people don't want to work for them
@@kasession Yes it is. If you don't pay a living wage, they will leave.
Wage levels weren't even discussed.
@@kleindropper Yes it was. Dave basically said they shouldn't be paid market rate.
Dave is dead wrong on this call...
What is his problem with the government?
government makes bad decisions with my money.
The government was the idiot who gave this guy a loan using taxpayer money. The government is incompetent and should get out of the banking business.
If you haven't figured that out by now, you're not very old.
Jade is lookin' smokin'!
Never cut up your credit card.
Never invest in 401k unless you are 100% debt free, including house.
Never work for an employer who doesnt offer a pension.
Never work past age 50.
Never live somewhere where palm trees cant grow.
Never let your passport expire.
Credit card is invaluable in the right hands.
Many tax benefits in real estate.
Pensions are gone with few exceptions when you'll have to sign your life away.
I am a nurse educator and will work until at least 70.
Palm trees equate to humidity, heat, natural disasters, high cost....
One passport is not enough, have two or three just in case.
Pensions LOL.
@@kleindropper 21% of American workers have a pension.
@@aolvaar8792 4% in the private sector. Pensions are a dinosaur only still used by government to milk the poor taxpayers, and they are beginning to bankrupt cities and states.
@@aolvaar8792 CalPERS for example is now up to $680B in unfunded liabilities. People relying on a pension for retirement are fools!
listen to Dave they unionized or some crap spoken like a true oligarch down vote