Question: Brent works full-time and was presented with a business opportunity. From the outside, it looks like a pyramid scheme, but the deeper he looks into it, he doesn't think it is. He doesn't know much about multi-level marketing firms. Should he bother getting involved with this? Dave breaks down how these things really work.

Dave Ramsey's advice: Multi-level marketing has good and bad associated with it, and both of those are earned. You will be paid for recruiting and motivating and replacing lots of numbers of people who will sell the product. You'll make a little bit selling yourself, but 98% of your money will come from you building a sales force.

There is no ceiling on your income, and if you have the skill set to hire and train people over a long period of time, and they have a good business plan, you could make some great money.

The bad part is that these things too often take on a level of enthusiasm that makes them start to feel like a cult. You start to look at everyone you interact with as a recruit and you have no relationships in your life anymore that aren't transactional. They break down their manners and decorum to the point that no one wants to be around them.

The other way that it's bad is that, in their enthusiasm, they get so excited that they end up lying about what you can make. You aren't going to work three hours a week and make $100,000 a year doing anything; that's a lie. This is going to take a long time and it will be very hard, and you can't lie to people.

Hear the call!

Download Dave's show, commercial free, right here!

Podcast Dave's show!

Question: Christina has an attitude with Dave about how much your income taxes shoot up when you work a bunch of extra jobs. This one irritates Dave, especially since he talks about cause and effect right before he takes her email!

Dave Ramsey's advice: I know more about income taxes in my little finger than you will if you study them for the rest of your life, you twit! Your income taxes do not go up when you work six part-time jobs. Withholding can go up, but you'll get a serious refund. If you claim 16 dependents when you take the job, which you can legally do, you can take most of the money home. Plus, a lot of part-time jobs don't do withholding. You're looking for a reason not to work, you bum!

Hear Dave speak out!

Download Dave's show, commercial free, right here!

Podcast Dave's show!

Question: Listener asks Dave to list things they should do when they are laid off. Dave doesn't have a list, but is happy to give recommendations.

Dave Ramsey's advice: I'd say the first thing you do when you are laid off is you take your severance and put it in a pile and call that your emergency fund. Don't pay any extra on any debts and stop adding to retirement and college accounts. Do a detailed budget of your household and cut your lifestyle to nothing, so your emergency money will last as long as possible. A lot of people don't cut their lifestyle because they are already hurting, and don't want the pain of a cut budget to go with the pain of losing their job.

As far as insurance goes, be on the hunt for life insurance if you had your insurance at the company. For health insurance, get a high deductible health savings account with a low premium.

For a 401k, roll them out directly into an IRA with a direct transfer rollover. If you have them send you a 401k check, they will withhold 20% on you. You only have 60 days to put in 100% of the money, but you only have 80%. Don't cash out a 401k except to avoid bankruptcy.

Also, don't be afraid to take part-time gigs to keep money coming in while you are looking for the permanent career change that this represents.

Hear Dave talk about it

Download Dave's show, commercial free, right here!

Podcast Dave's show!