DAVE SAYS

D AVE SAYS

Dear Dave,

I graduated from college six years ago with a business degree. Currently, I’m in data analytics making about $40,000 a year and have $155,000 in student loan debt. Do you have any recommendations as far as refinancing my student loans and getting the interest rates and monthly payments down?

Austin Dear Austin,

I’m not trying to be mean here, but what in the world are you doing in data analytics that pays so poorly? Most ofthefolksIknowinthatarea make a ton more. And you’re going to need to start making a whole lot more to pay off $155,000 in student loans.

For starters, you shouldn’t be looking at this from a what-can-I-do-to-make-thismanageable perspective. You don’t want to give this Sallie Mae nightmare a haircut, then tell her to sit in the corner all nice and pretty. You want her to leave! Now, there’s nothing inherently wrong with refinancing to get a lower interest rate, or lower payments, if you do it the right way. But in most cases that translates into keeping the debt around forever. You need a better plan.

Instead, let’s shift the main goal from that to paying this thing off as fast as possible. That means big, hairy chunks of payments on the principal. And that’ll probably mean picking up an extra job or two, because right now you’ve got what I call a shovel-to-hole ratio problem. The hole you’re in is a big one—a $155,000 one. And you’re working with a $40,000 shovel. You need a bigger shovel, and a lot of extra work, instead of trying to keep these loans around like they’re pets. What can you do—for a short period of time—that’s legal, moral and will make you the most money the fastest?

On the day job side of things, you may want to consider looking for a position with a different company, Austin. You’re way underpaid if you’re in data analytics and making just $40,000 a year.

Good luck!

— Dave Dear Dave,

I bought a house about a year ago. Currently, I have $45,000 sitting in an account with a money manager. I’ve had this account for a little over three years, and the investment hasn’t grown much, if at all. Under the circumstances, and being single, too, would it be better to pull the money out of that investment and put it toward my mortgage?

Johnny Dear Johnny,

I recommend putting 100% of any non-retirement savings, above your emergency fund, toward paying off your mortgage until the mortgage is paid off. I’d still tell you to pay down the house, even if you were making 20% on your money. Just make sure you’re following the Baby Steps, and you’re already putting 15% of your income into good retirement investments before attacking the house. Paying down your mortgage is not an expenditure that’s just lost money. The cash is sitting there, you’re just banking it in your home and land. And on a side note, with all the craziness in themarket overthelastthree years, you might come to realize breaking even over that time wasn’t so bad after all. Johnny, the shortest distance between where you are and your first $1 million to $5 million in net worth is getting your house paid off. After that, load 15% to 20% of your income into a serious retirement plan. And by that, I don’t mean playing financial footsie with some little brokerage account. Investing in good, growth stock mutual funds with a proven track record of at least 10 years is a proven way to build wealth the right way.

I’msureyoucanfindsomeone on TikTok telling you to do the exact opposite of what I’m suggesting. But you won’t find that kind of advice coming from real millionaires.

— Dave Dave,

I am the managing partner of a family business. We would like to add to our team, but I’m worried we can’t try to hold millennials and Gen Zers to the same standards as other generations without losing them. How do you feel about this?

Sarah Sarah,

Listen, I’ve got a building full of Gen Zers and millennials — and I love them. If you hire the rights ones, you’re getting people who love calluses on their hands and on their brains. They make the interview process easy too, because there are just two types from these generations:theoneswhoare unbelievably awesome and the ones who aren’t. But the great ones are not afraid of hard work. They’re passionate, intelligent and mission driven. I mean, they’ll charge the gates of hell with water pistols for something they believe in.

But that means you have to provide meaning in the work they do. They want to see that their work connects to something that matters. They want to be treated with dignity, not like units of production.Andtheyhaveinquiring minds. Most of them want to know why you do things the way you do them. All that is perfectly okay with me and always has been.

Now, they’re the worst two generations to work for someone who’s just a boss. That’s because bosses push while leaders pull. If you’re going to pull, you have to inform, communicateandshare a vision that draws people

Dave Ramsey is a seventime #1 national best-selling author, personal finance expert, and host of The Dave Ramsey Show, heard by more than 16 million listeners each week. He has appeared on Good Morning America, CBS This Morning, Today Show, Fox News, CNN, Fox Business, and many more. Since 1992, Dave has helped people regain control of their money, build wealth and enhance their lives. He also serves as CEO for Ramsey Solutions.

into your mission. Bosses, for the most part, have a “do it this way because I said so” attitude. That’s not going to last long with Gen Zers and millennials.

I get where you’re coming from though, Sarah. I’ve still got friends and business associates who tell me we’re going to lose everyone from these generations if we don’t cave in and give them things like “the flexibility to work from home” — which really means, “I don’t want to work much” or “I want to work all the time.” Listen, I understandnoteveryonewho works from home falls into one of those two categories, but some of them do. There are folks who put in 80 hours a week because they can’t put their screens down and live a life. Or they work three hours a day and call it “working from home.” That’s not working from home — that’s working part-time hours for full-time pay. And that’s called stealing.

But millennials and Gen Zers? I’m a huge fan of these generations. I truly, personally like them. They are, for the most part, genuine, real people and hard workers. If you give them what you should as a leader, they’ll blow you away with their smarts and what they’re capable of achieving!

— Dave