Go Into Debt to Get a Raise at Work?

Added: 2026-05-09

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[00:00:06]I'm basically a subcontractor working for um a company.

[00:00:11]Um I have to be doing a lot of driving, need a personal vehicle. Right now, my boss is lending me one of his. I currently have a broken-down truck that needs an that needs an engine, probably around a $5,000 fix.

[00:00:22]If I get that fixed, my boss will give me the equivalent of a 20 to 33% raise across the board um on my job. The question is whether or not to take out a loan to do that, and then since right now uh the income that I'm getting is fixed pretty good. Um so, I can literally raise >> What's that? What do you do for a living?

[00:00:45]I'm a I clean clean swimming pools.

[00:00:48]Okay.

[00:00:49]All right.

[00:00:50]And so, a $5,000 or $6,000 truck will get the job done as long as it runs and gets you there, right?

[00:00:57]Well, so I currently have a vehicle that is broken down. It needs an engine.

[00:01:01]>> you told me that. I don't want to fix it. It's crap. I'd rather just buy one that's already running.

[00:01:07]Okay. So, what can you sell that piece of crap for? That salvage, a thousand bucks? 1,500?

[00:01:13]Not quite sure. I haven't priced that yet.

[00:01:15]>> Yeah, okay.

[00:01:16]What um what what kind of what kind of year model and what truck is that that's sitting with no engine?

[00:01:22]Uh 2001 or maybe a 2003 Ford F-150. Okay.

[00:01:27]Yeah, so you can buy that car with an engine running for five or six grand.

[00:01:31]Yeah. Okay. Um And what do What are you making How much do you make before he gives you this 20 or 30% raise?

[00:01:41]Uh net is 33.5, gross is 30 after my 1099 taxes. 33.5 33,500 dollars?

[00:01:51]Yes.

[00:01:52]Okay.

[00:01:53]>> about Yeah. Yeah.

[00:01:55]Okay.

[00:01:59]And so, a 20% raise is $7,000.

[00:02:06]That sound right?

[00:02:08]Uh Yeah, 20% of 33. Okay.

[00:02:13]And so, um Yeah, the um So, you break even after 1 year.

[00:02:21]Okay.

[00:02:22]If you spend $7,000 to get a truck and he pays you 20%.

[00:02:27]Um how long have you been working for this guy?

[00:02:30]Well, so So, he's the one that trained my dad. I've been working for my dad for ever since I'm 20 I'm 28. I've been working for my dad off and on since I've been 15.

[00:02:40]Um I I recently had a life-destruction event and have been literally have started working last week.

[00:02:48]Back in this job that I have like What's a life-destruction event? Hey, what's up, guys? It's Jade. Listen, my husband and I drive used vehicles, and we really do plan on keeping those running for a long time. So, we trust Christian Brothers Automotive to take care of them. Their team is honest, their shops are super clean, and what I love is they don't try to upsell us on things that we don't need. I personally feel really confident walking into Christian Brothers because I know that no one's going to try to take advantage of me or scare me into unneeded repairs.

[00:03:16]Christian Brothers gets it. So, schedule a service today at cbac.com/ramsey and get 10% off your visit. That's up to a $250 value. See stores for details.

[00:03:28]What's a life-destruction event?

[00:03:30]I I had a mental health crisis. During the mental health crisis, I there was there was family violence happening between me and my wife. I got put in prison for that. Um even though in Texas, there's supposed to be provisions for preventing for helping people with mental health, so not just put them in prison, but that didn't happen with me, so How long were you How long were you away?

[00:03:55]Uh 2 years and a month, and then I got a violation and was back in for another 5 months. So, Okay. I'm back out a week now, so Okay. No. Yeah, don't borrow money, please.

[00:04:08]>> You do not need to borrow any money.

[00:04:10]You're You're You're coming off of a highly unstable situation, and you haven't stabilized yet.

[00:04:19]Um at least we don't know that. We hope you have, and you hope you have.

[00:04:23]>> Mhm. Okay? If you told me this was all 3 years ago, it might be a different discussion. It wouldn't be a discussion about borrowing money, it would be a bit a different picture. But instead, we're 3 minutes into this, not 3 years into this.

[00:04:35]So, you need to sustain a life with very little stress, and adding debt to this is not the thing.

[00:04:42]So, thank you, boss, for the new job. I'm sorry I'm a minute out of prison, and I don't need to be borrowing money right now. I'll have to drive your truck for a while longer um until I can save up and pay cash for something.

[00:04:57]How long till you can save up six grand?

[00:05:01]Um that's kind of that's kind of the issue.

[00:05:04]The all my money's basically kind of breaking even in my EveryDollar zero budget. Where's it going?

[00:05:12]One second. Most Biggest expense is $300 in gas since I'm spending about 105 I'm purchasing about 105 gallons a month.

[00:05:24]Come on, load, please. Cool.

[00:05:26]Well, how much is your rent?

[00:05:30]That's it. Me and my wife are currently separated. She has a $500 rent. I have a $250 rent. You have to pay the $500 rent?

[00:05:39]Yes. Why?

[00:05:41]Uh currently because we have we have two kids. She's basically stay-at-home. Her family sometimes helps, but if I'm paying this stuff, she doesn't ask for the money.

[00:05:50]Um and currently because of the family violence, there's a no-contact order, so I cannot coordinate anything with her.

[00:05:56]So, I'm kind of defaulting to doing everything, basically. Yeah. Well, um I'm going to help you. You don't have to do everything.

[00:06:04]You need to make sure the kids have something to eat, but she also is going to have to make a life without you.

[00:06:10]And so, she and and that means she has to develop a way to live sustainably without you feeding her.

[00:06:20]Okay? So, I um you know, right now, we've got to get you up and stable. So, your 250 rent um even 500 going out for her still not used up all your money.

[00:06:32]So, you've just started. This is real fresh. Thomas, please don't go borrow money to buy a truck to work for a guy that you've been working for for 10 minutes, even though you've known him 100 years. This whole thing Everything in your life has been quick and sudden and fast.

[00:06:49]>> Impulsive.

[00:06:50]>> And I want you to slow down.

[00:06:55]And just be boring for a while.

[00:06:58]Let's know excitement. You've had enough excitement to last you the rest of your life.

[00:07:03]Just be boring, Thomas.

[00:07:06]Can I Can I paint you a picture, brother?

[00:07:08]All right.

[00:07:10]The last two plus two and a half years, somebody told you when to get up, when to eat, when to you could go outside, what you were going to eat, right?

[00:07:20]Yep.

[00:07:21]When you borrow money, that bank tells you, "I don't care how you feel. You're going to work tomorrow cuz I want my money. You already took my truck.

[00:07:31]Oh, you got you lost that job? I don't really care. You're doing this because right?" And so, what I don't want you to do is walk out of prison and then walk right back in voluntarily.

[00:07:40]And that's what borrowing money does.

[00:07:41]Stay free.

[00:07:42]Yeah, that's good. That's good. Stay free. Hang on. I'll send you a copy of The Total Money Makeover, and we'll help you as you rebuild your life, and steady, steady and slow. Christian, send him Building a Non-Anxious Life, too. I want to give him some tools for walking through the ups and downs that are going to be the next 5, 10, 15 years of his life as he steadies himself and builds a new version of himself from the inside out. We'll send him both of those. Yeah, very good. That's good. I like that. Create your free EveryDollar budget today, the simplest way to budget for your life.