Are You Ready to Take Control of Your Money?

this is the ramsay show [Music] you can be intentional about your character you can have money and a career you are the hero in your story [Music] live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios it's the ramsey show where debt is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice i'm dave ramsey your host this is the ramsey show dr john deloney ramsey personality best-selling author host of the dr john deloney show which is exploding as a podcast and a youtube show is with me today is my co-host open phones at triple eight eight two five five two two five triple eight eight two five five two two five sarah's starting this hour off in charlotte hi sarah how are you i'm great how are you better than i deserve what's up in your world um so i just wanted to ask um so my husband are both full-time college students and we're going to be seniors in the fall and i was just wondering um whether or not you would suggest we go ahead and pay off our student loan um with extra scholarship money that we're expecting to be refunded to us uh usually no uh your husband and you changes the conversation a little bit you're both going to be seniors in the fall so you've got one year left and how is the fall how's the last year for both of you being paid for all scholarships yeah so after we got married we qualified for more financial aid and so the scholarship money that we had was more than what it cost for tuition okay how much more um for this um upcoming school year we're expecting about 13 000 per semester on top of your yeah you're expecting how and how are you eating um well my husband works full-time as well oh okay cool very good and so what does he make i'm about 30. okay all right um out of an abundance of caution no i would just pile it up and wait to wait to start your baby steps until graduation because both of you will graduate next year at this time and both of you hopefully will embark on much better careers than either one of you have ever seen before agreed so your pay should go up way up this time next year is that right right okay right at that point i want you to have more than anything added no more debt if you have twenty six thousand dollars laying around and have no more debt and have two big jobs and you start your debt you start your baby steps you're going to throw that 26 immediately at the student loans and the only thing you will have lost was how much you would have paid off between or how much interest you would have saved between uh now and uh this time next year and uh really you may not even be accruing interest yet are you no not yet well we did for all of our student loans are from our freshman year yeah um so we have interest all the way up until last year when they suspended that yeah but but and it should go back on in september so uh i think that's when it comes back on if i remember so you're gonna have a little interest with my idea but that's okay i would rather the big thing is for sarah and her husband to graduate with no more debt and i want this cash as an insurance policy to graduate with no more debt then when you quote unquote start your careers following graduation one year from now and you get the big jobs now we're gonna really push play on the baby steps get going hard on it and we're gonna clean out any cash we've got except a thousand dollars it's not retirement money we're going to throw it at your debts which would obviously be your student loans and or any other debts you have don't take out any more debt use this 26 000 to ensure that that happens that's the first goal it's kind of a almost like the doctor's oath hypocrite hippocratic oath do no harm do no more harm is what this is don't just don't allow yourself to go further into debt and that's a cool position to find yourself in that suddenly um scholarship money falls from the sky yeah that's outstanding yeah well you went and got it yeah that's good too which a lot of people just kind of wander along don't even bother i mean if you quit going through school like you take too much xanax then you probably could people just wander through like they're in a haze and in in her case to her credit they got married went hey maybe there's some oh let's go get some money i don't know if i ever told you dave the number of scholarship committees i sat on that went un spent because we didn't have any applications for the money this is internal scholarship money at the university where i was an administrator so how would they have found that money we would announce please apply so they should just know to go and apply well donors will donate right a million dollars and it rolls off the interest out of the endowment so there's a thousand dollar scholarship here and we would make announcement after an announcement please apply for the scholarship here's a list of them where would they apply they would go on the individual committee no you'd go online to a central place and write your uh for any scholarships available correct for the university and it's there's not only the university but your particular college within the university right and they just would sit there and say well we can't we didn't have an application for this one or this one or this one or this one or one savvy student would apply for all of them and then we'd have to have the hard cop do we give them all to one student or just let it sit there let it sit there in a crew again right so just like you said it's easy to put all your eggs in that scholarship basket as a freshman and then you take your foot off the gas man if you look every year man it never seems well anytime something changes like now we're like old married people and we're college students now that's a whole bunch of scholarships which is what happened with her somebody donated money for marriage students and architecture program who fill in the blank right phenomenal yeah phenomenal zack is with us zach is in phoenix hi zach how are you hey i'm good thanks guys for taking my call sure what's up really appreciate it hey so i just need some big picture wisdom from you guys i i really want to pay off our house i want to be completely debt free and i have a rental property that produces really really well i've had this thought of selling that rental property taking the proceeds putting it on the house which would still leave a little less than probably a hundred thousand dollars on the house to pay off um i guess my big picture vision with the rental property was to pay it off on a 15-year fixed and then utilize that to help cash flow my kids college and other things um but man i've got this desire to just be you know completely debt free with the house and everything but i would love some input and some perspective on what you would do what's your household income about 130. cool how do you babies uh oldest is nine we've got a nine seven five three and one what do you owe on the rental uh 150 155 what's it worth uh i would probably sell now for probably around 280. okay if you owed 1000 would you go borrow another 150 on your house in order to buy this rental if you didn't own it i would not then it's time to sell it okay a good rule of thumb on stuff is if i wouldn't buy it again it's time to get rid of it that includes a boat that includes you know just about any material item certainly investments and that keeps you from thinking about too many other things so for whatever reason and i think in your case i can read your mail because you told me what it says the your reason is i'd rather be out of debt than i would own this rental but owning the rental is a good thing but i'd rather be out of debt than owning this rental so how do i solve this dilemma when i reverse engineered it on you you instantly went oh the debt thing's more important way more important to me because you instantly answered it and so that you know for the same reasons you wouldn't do this [Music] still on baby step number one huh how'd you guess with health care costs rising learn how christian healthcare ministries can help you make the most out of your budget visit chministries.org budget don't worry it's worth it [Music] welcome to the ramsey show dr john delony ramsey personality is my co-host today open phones as we talk about your life and your money the dr john deloney show with new episodes every monday wednesday and friday on youtube eye covers everything from anxiety to boundary issues to crazy in-laws to just wild mental health things it's a it's really really helpful and entertaining show it's a lot of fun i listen to it all the time not only because i'm the ceo and it's my job to make sure stuff going out of here is good but i just enjoy it i appreciate that it's very good so be sure you can tune in there if you'd like to be on that show you can call him at four six nine three thirty two ninety one you can email and kelly and the team will get back to you at ask john ramsey solutions dot com ask john ramsey solutions dot com or you can talk to him right now triple eight eight two five five two two five diane is in california hi diane how are you oh i'm fantastic dave what a great time to be able to talk to you thank you for helping me my pleasure how can we help well we've owned our boutique real estate and property management business for over 40 years i'm 68 my wife is 72 we're getting ready to sell it to a wonderful young man that i've trained for the last six years we've talked to a business broker and he shared with us you take the average net profit for the last four years which is 96 000 a year for us you multiply it on two times five two and a half times that gives us 240 000 and then we add back in our discretionary income and of 84 000 a year that gives us a value of 325. my question dave is we're pulling out 7 000 a month from this business we're retired pretty much we live four hours away from the business and i can't take that 325 and create seven thousand dollars a month if i sell it to this wonderful young man so my question is am i missing something i need uh your no you're not missing it uh but you know i i don't disagree with your business broker much uh the formula i use is a little bit more simplistic now the 96 is that after both of you uh women you're not operating it today someone else is operating it yeah we have a a a broker manager you're absentee owners you do no work in the business yeah right the only thing we do is do about do a p l statement every month on it yeah okay well that would be as if i bought it i would have someone run it for me right i live in tennessee i'm not going to day to day be involved in that so an an investor would buy it after all see when sometimes sometimes when someone's selling their own business they work in the business and we have to take their salary out of the net profit too what it would take to replace the manager but in your case you've already got a manager so we don't have to take that out so basically you're making a hundred grand a year 96 a year profit and i would say if the buyer wants to make 25 on their money it is worth four times that much if the buyer wants to make 20 on their money it's worth five times that much so generally a small business goes in a four to five cap of net profits and so i'm a little bit higher than your broker but not much he's got you at a high of about 400 with his ad back and um and my four times put you to about 400 so that that is a fairly reasonable valuation process that the business broker used there um he used 325 as well but he added back the 85. no the 325 the 325 includes the 85. i think that's low the young yeah and the young business broker we're paying him sixty thousand dollars a year as a salary to run it but you still after that you're after that you're netting 96 after you paid him correct correct okay so that that that business is generating an absentee investor 96 000 so let's call it a hundred thousand dollars so if i bought it for 400 and i got 100 back i would be making 25 on my money you see how that works yes yes and if i bought it for 500 i'd be making 20 on my money okay and you want to make over 20 buying a small business because it's a higher risk investment than say a mutual fund that might pay you 10 or 12 percent so you know so usually a small business is going to go in the 25 20 rates so i think it's worth north of 400 but uh now how can he pay you let's go back to that solving that have you hired the business broker yet are you are you obligated to that person yet we're not obligated per um legality but per um he's the one who's been running it i trained him oh no no no who's who gave you the valuation process oh the business broker we have not signed a contract nothing okay so he just said this is how you do it anybody okay good because you're gonna sell it to your guy is the goal and you don't need a broker to do that you already got your buyer right but we don't he doesn't have any money though businesses yeah but no no no he doesn't have any money your guy that's running it is who you want to sell it to right right okay so you don't need a broker to do that because you've already got your buyer that's true but we've never sold a business before so well you just need an attorney to help you do the asset transaction is all by california law that's and that's nowhere near as much as paying a business broker a commission for making his sale that he didn't make right he already agreed to do it for five percent but you're a little stiff yeah because he didn't do anything except the transaction okay so you pay an attorney to do the transaction get get your business attorney talk to them uh about that now here's a way we can structure it what if uh the young man that is running it you're paying him 60 now correct what if he agreed to say i'm going to continue to once i'm the owner i'm going to continue to live on 60 and all profits in excess of that go to uh the you guys the sellers until we reach 400 then it would take him four it would take him four years to pay you out that's an idea some kind of an installment sale like that but however we thought i think you can come up with the cash but then the question comes back to you i can't make on 400 even i can't make 100 on my 400. that's right yeah but you've got less risk and you're out of the business why are you selling it if it's so great because we were old no you're not yeah no you're not uh 20 years from now you'll be old uh okay you know dave we had a good run we've owned it for over 40 years yeah and here's the thing you want a little less risk and a little less hassle in the golden years exactly and so you're going to make you're going to make less return for that exactly exactly so what can you make on for what can you make if you invest 400 you can make about 40 a year yeah yeah yeah and that and you're going to get 40 a year but you're but it's a lock you got almost zero you got compared to what you have now you've got almost zero house on zero risk and no more responsibility yeah yeah that's that hassle factor yeah yes you got it you you have to you have to keep your finger on the pulse of that and that requires muscle tension in your hand [Laughter] and they got arthritis already you guys are a hoot you all are fun but dave because of you were debt free yeah i didn't pay it off you did honey y'all are awesome hey yeah go i i think you accept 400 um and get work out of a deal with the kid let him buy you out and um and you're just going to make less on your money and the reason is is that you have less risk and less hassle yeah and you clarify today thanks a million thanks for calling in that's how it's done i love it i don't know when you were gonna enter that conversation but i i was that's my favorite spectator sport right there what a duo oh my gosh this is the ramsey show [Music] hey folks i got a great option to help you pay for your education the army national guard the army national guard believes you are the next greatest generation because you have proven that even in adversity that you have what it takes to succeed that's why they offer benefits like tuition assistance career training and a paycheck to help you avoid debt no matter what your goals are the army national guard can help you get there visit nationalguard.com to find out more [Music] [Music] [Applause] [Music] so in the lobby of ramsey solutions dan and julia are with us from cleveland ohio hey guys how are you good good welcome welcome good to have you how much debt have you guys paid off forty nine thousand eight hundred and four did you say twenty nine or forty nine four nine forty nine thousand eight hundred four i'm gonna call that fifty okay and uh how long did it take you to pay off this fifty thousand eighteen months good for you and your range of income during that time 96 000 to 98 000. okay cool what do you all do for a living i'm a mechanical engineer i'm a veterinary assistant oh good very cool what kind of debt was the 50k had two car loans um some uh roof on the house and some credit card debt no student loans no student loans we paid those off already okay all right so you're kind of bopping along about normal how long you guys been married 13 years 13 years so after 13 after 11 years all of a sudden this wasn't okay what happened we were tired of living paycheck to paycheck and we were struggling to make ends meet we actually got to a point where we actually had to ask family for money to pay the mortgage and that's depressing it was terrible so we actually our friend angie had told us about fpu and the total money makeover book and on one of our side gigs we actually um listened to the book and um we realized that our our church was offering the class oh so you went to financial peace university at your church yeah okay cool we took the class and we just ran with it wow okay so that was the whole uh you know obviously um when the student is ready the teacher will appear right yes and so you walk into the class and boom it's game on yeah so how far into the club both of you were open to this we were tired of it both of us yeah just look at each other we gotta do something absolutely okay and so you walk into the class ready to go and was it first class game on or it took a little while first class was game on because we actually had started a little bit before you had told them makeover before that yeah right we listened to the book so we we had kind of started but not really fully into it the way that yeah you knew how countercultural i was going to be it didn't shock you right exactly okay yeah you didn't have to you got over the being weird part before you got there okay very cool so i'm i'm always interested in my favorite part of these is is that first conversation who came to who how'd that go i think you came to me right i think i came to you because our my our friend angie was talking to me about it okay and then i had to talk to him so you got the courage i had to talk to him so you got the courage and she brought it up and you said i'm i'm all in let's just do something yeah i just never really had a game plan i don't think you know just kind of kept going and doing my own thing and never had any you know real this is what we should do so it wasn't so much as you know it's just a lot of bad decisions not knowing what to do who was doing the bills both of us at the time yeah so you're you're talking about it already but he just talked about how bad it sucked right exactly what was the dark night of the soul when one of you had to call the relative oh it was my grandpa and i it really stunk yeah but he was more than gracious and gave us the loan and we actually paid it back and it was very nice and said never again never again it's that feeling oh just the peace we have now is just wonderful yeah and even if he wasn't you know it doesn't matter how gracious he is because it still happens in your stomach right yeah yeah that's dark night of the soul that's a good way to say it it's just when you have nowhere else to go yeah visa won't even talk to you right and you got to go to grand dad wow yep yeah didn't it yeah wow and you got to pay that off during this time yes yeah that's good yeah that's very cool so what do you tell people the key to getting out of debt is your professionals you have done it um say sticking to a budget you know having a plan and really sticking to it and being intentional about where your money goes and just being making that important and making an important part of your life i think talking about it communication we really i think we talk almost every day about our budget about money just how happy we are where we are it's nice that the conversations are good now rather than you know where's the money coming from it's like all right now you know what can we do yeah it's a little less freak out now exactly yeah i hear you yep area so what's what how has this improved your marriage just the communication i would say and not being stressed out about money and being able to really enjoy it rather than worry about it i you know i never i've never contextualized it that way but there's a difference between having a conversation about what do we want to do versus here's what we have to do that's two totally different heart rates when you're having that conversation right huh that's fantastic yeah one of them is dreaming and the other one's freaking it's treading water yeah yeah yeah oh yeah that's cool that is a different different process well who are your biggest cheerleaders outside the two of you our friend angie oh yeah good i'm loving angie at this point andrew's my head recruiter over there i like her and then our um our fpu coordinators mike and tim they were really yeah they kind of kept with us throughout the process and we were always emailing them saying hey we did this you know they were all very excited for us so yeah helped us stay motivated wow very cool good job you don't get that from your electrical engineer buddies who are asking why are you keep bringing your lunch man exactly definitely wow yeah and you brought the kiddos with you what are their names and ages let's get them in the shot we have emily who's nine and james who is seven all right so have they been practicing are they involved in this whole thing yes so they know about a debt-free scream they know what happened their lives have been changed because their mom and dad took control yes yes and i'm proud of y'all thank you very very well done we got a copy of the legacy journey which is the next step in your journey as you move on from baby steps two and three and really start to build some wealth and increase your generosity i'm so proud of you very very well done and thank you to your church for teaching financial peace university it's a big deal it's a very big deal very cool stuff also a copy of the total money makeover for you to give away because the uh audiobook got you started so now you can get somebody started with a hard copy so uh pay it forward a little bit good good job guys very well done yeah and don't ever lose perspective that you've set them up to not experience what you guys did and that's legacy that's reclaiming those that those bad decisions from the past and turning into the road that they can walk on that's incredible yeah good for complete family tree change yeah all right it's dan and julie emily and james ready to go all right 50 000 dollars paid off in 18 months making 96 to 98 count it down let's hear a debt free scream three two one we're [Music] this is how it's done oh man i love that that is so so cool that's the coolest man you know financial peace university is a part of ramsey plus you hear it say hear us talk about it all the time your income's your greatest wealth building tool when you get out of being held hostage like that it changes everything you can get out of debt you can take back your income you can get your marriage in a whole different place different kinds of conversations where do you start financial peace university is now part of what's called ramsey plus it's a membership and you get access to all the tools including that class to change your life forever with our best-selling online courses including financial peace university listen this stuff actually works the average debt paid off in the first 90 days is dollars 5300. average person saves twenty seven hundred dollars that is an eight thousand dollar change in position on average in ninety days you can get out of debt you can save you can free up your income you can do it faster than ever start with a free trial you can have access to the class they took at ramsey plus today text trial to 33 789 that's trial two three three seven eight you know when i started teaching financial peace university almost uh 25 years ago in a bad suit with an overhead projector and a hotel meeting room i had no idea that it was going to end up on video someday and that someday it would be on the internet internet and if someday a family from ohio would get in their car and drive to nashville to stand on this stage in front of me with their two kids and scream they were debt-free what a legacy you built man but pretty cool for them i'm so proud of them they're heroes they are millions of families have decided to take control of their own destinies i'm so proud of all of them awesome this is very very cool this is the ramsey show [Music] [Applause] [Applause] [Music] [Music] [Applause] [Music] dr john deloney ramsey personality is my co-host today open phones at 825-5225 kevin is in philadelphia hi kevin how are you hey dave good afternoon how are you better than i deserve what's up yeah i had a quick question me my wife the newly married we got married earlier this year congratulations thank you so much uh we recently just paid off about 30 000 in student debt um so you know that is so good good uh but right now we're in steps four five and six we also have the emergency fund um and we're wondering how much to allocate to retirement because we also plan to get a house soon in a couple years good for you all right yep 24 she's 25. excellent way to go man you gotta you got a game plan you're rolling it out i'm proud of you so some people we call that baby step 3b you've probably heard that haven't you yeah so once you've got your emergency fund in place that's when people start saving for their first home sometimes people also start saving for retirement for simultaneously and sometimes they put off baby step four a little while and put a hundred percent of their savings into the house fund until they so they get there a little quicker and delay starting their retirement fund a little bit either one is fine i don't want you to delay starting it for 10 years but delay starting it for one year or two years is okay if you put nothing in there so anywhere from zero to fifteen percent going into your retirement savings right now while you're on 3b is just fine does that make sense yes what's your household income uh about 92 000. way to go wow and so how much do you think you're going to save uh so right now we have 27 000 saved and then we have 10 grand in the second account for the emergency fund um and we're not sure exactly that was my next question how much can i actually afford for a home so based on the income and it's probably going to increase um you know maybe on average a little bit every year but we're wondering because we're looking at homes now and maybe you have some guidance to how much we should be spending yeah well run run some numbers with your real estate agent or with an online calculator out on a 15 year fixed rate loan and you'll be at 275 3 somewhere in there right now on your interest rate uh and where your payment is no more than one-fourth of your take-home pay now take home pays after taxes not after health insurance not after other deductions from your paycheck but just take taxes out of your paycheck and call that your take-home pay and and then say all right this is what we're going to bring home and about a fourth of that on a 15-year fixed will keep you in a really really affordable uh uh situation in a safe situation a safe yeah yeah you you'll have margin to be able to do other things uh like getting 15 going into your retirement like when you have kids you can add your uh emergency fund to that and um and so on joel is in portland oregon hey joel welcome to the ramsay show hi dave how are you better than i deserve how can i help i know you're gonna say that i am very predictable yeah well that's a good thing so i co-own a business with my brother-in-law and i bought into it a little over a year and a half ago and we we doubled the business in the first year and we're doubling it in the second year as well but uh he wants to sell his half of the company and i'm just trying to figure out what's the best way to go about that and if you think it's a good deal or what i should look out for is there a personality issue do you all not get along anymore is he just is he setting you up no we we work together uh fantastically um and uh both he and i agreed that we were the only people that we have ever wanted to do business together and uh it's been fantastic so far he just does not enjoy the industry uh that we're in and so he wants to do something different he's also a entrepreneur and he just wants to try new things and do something different try something new uh challenge himself and so as an entrepreneur i totally get that i support it um so we're just trying to figure out the best way to go about it on uh on our end that's about a healthy way to come at it i like it so why do you why do you want to stay in it well i have uh almost four kids and um and my wife and i it's really important for her to stay home with our kids and for for us to raise them and so there's that it's a good business we make we make a good amount of money we're near our family and we love our church and it definitely has huge growth potential and okay what was uh what was the net what was the net profit uh in or what will it be in 21 let's say um if well before taxes and expenses we're looking to get probably close to 350 to 400. i'm sorry expenses are come out before you make a profit expenses we're probably less than 40 000 maybe 50 000 in expenses okay taxes i'm not worried about i'm just saying i mean if the business has business taxes that's fine we can take those out but what is the net profit that the two of you will pay taxes on you'll pay income tax on in 21. uh probably about 350 000. okay so 175 sure half 175 sis half is that is it split 50 50 yeah okay and how how is he proposing to be bought out and what does he want he wants 144 000 over a four-year period um so basically nine thousand a quarter over four years that's awful for him or me for him what's going to say man that's where it's worth like 10 times that yeah that's not enough um are you sure you're making what you think you're making ah yes why does he want such a small percentage of this company um that's a good question i mean i think part of it is where or family so you know i'll give you another proposal i'll give you another let me give you another proposal okay wait a minute did you guys take salaries out of that before you got to 3.50 you made no money so you you're both working you're both working there and doing what what do you do there so we the way we have broken down is like we have a very small salary check how much uh that goes into our accounts every month and then we do how much dividend check once a month i know how much like 2700 bucks okay so if i bought this business from you guys and both of you were gone what would i have to pay managers to replace the two of you to do what you do well we're both out in the field as well so quick answer quick answer you're running out of time okay how much we probably to be worth it for someone probably probably about four to five thousand a month okay let's call it sixty grand let's call it a hundred grand all right let's take a hundred thousand dollars to replace each 100 60 each yeah okay so let's call it 150 off of 350 that's a 200 000 profit now his 144 doesn't sound so bad because his half is one hundred thousand um i suggest you pay him uh two hundred thousand over two years a hundred thousand a year for two years and buy him out in cash you got plenty of profit to do that with and you still make a great living you preserve your relationship with your brother yeah i pay him a hundred thousand dollars a year for two years and be done that'd be a good deal for you this is the ramsey show hey it's kelly associate producer for the ramsay show this episode is over but if you heard about an event product or service and didn't have a chance to write it down don't worry we list everything you've heard about during this episode of the podcast show notes section or head to the ramsay show.com thanks for listening this is the ramsay show [Music] you can be intentional about your character you can have money and a career you are the hero in your story [Music] live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios it's the ramsey show where debt is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice i'm dave ramsey your host dr john deloney ramsey personality is my co-host today open phones at triple eight eight two five five two two five that's triple eight eight two five five two two five danny is gonna start off this hour in harrisonburg virginia hi danny how are you hi gentlemen i'm doing great i'm a little star struck uh dave i gotta say i've i've listened to you for years and started when i took financial peace university and um my buddies give me a hard time but whenever we go out to get a bite or something say i don't know is that papa dave approved no that's cold [Laughter] well we're honored to have you sir how can we help today all right so the condensed version i'm wondering if i should buy a house that i do not want so a little back story my wife and i have been looking for a house for the past year um financially we're doing we feel prepared as much as we can be we're in uh baby step four we have a good chunk of change set down there is just no inventory in our area and i finally broke today when i got a call that a house we put a really competitive offer on um it went uh above it went uh no inspection it went guaranteed their their offer price um and so just feeling frustrated so i don't know if we should just keep waiting uh our landlord is selling our the house we live right now and so we're gonna be um kicked out in august so we're a little worried you know do we find a place to rent and pay more than what a mortgage would be or do we settle on a on a townhome or something really small that we just don't like i just went through this yeah yeah i know so what's the answer no no what don't buy a house you don't like yeah don't do that because you're gonna wake up in 12 months or 24 months 12 hours 12 yeah 12. i don't like this house oh wait i never liked this house what the heck did i do and you're going to it's like trying to date somebody that you know you have a future with and you just think i'm going to i'll change them i'll change them that bathroom's not gonna move in that house it's still gonna be there it is yeah i hate this for you hey listen i just went through this it was brutal it's a frustrating experience in the market right now and it really really is so this is euros first home correct and you're how old uh i'm 28 my wife's 25. every time i face something like this i read a study like gosh it probably 20 years ago and it affects them affected my decision-making paradigm ever since here's what the study said it said that people who build wealth and become wealthy make decisions based on how it's going to affect them 10 20 30 years from now people who are broke make decisions based on how it's going to feel this weekend yeah thank god it's friday oh god it's monday is we're broke it's what broke people say but rich people when they get ready to buy a watch they say can i wear this for 10 years 20 years can i get some or when they get ready to buy they buy high they buy expensive things sometimes but they buy high value things that last that's right poor people buy uh and broke people and i've been both but broke people buy stuff that looks good right now but that's cheap as crap and falls apart you know and so it's kind of the same decision-making they thank god it's friday oh god it's money i'm gonna blow all my money on the weekend because i'm a child and so uh emotionally so the way i back up on something like you're looking at when i'm frustrated and tired and feel boxed out by the market which is all the things you feel and it's your first house and ah man we're going to pay more in rent we're going to move twice because i got to go rent something then i'll find something right after i rent something and all that then then you know i you know so what what this tells you when i i pan back i go what's the best decision ten years from now don't buy a house you don't like and man it's hard especially with my wife saying i just i want to i need a home yeah right we got two little kids running around yeah um it's real real hard to be patient yeah talk to your landlord and go hey if i pay you a couple hundred dollars more a month would you rent for me for six more months yeah buy yourself a little time that's right and um or go somewhere for a weekend just go on a quick little getaway do something just to kind of clear the deck wipe the white erase the whiteboard and you gotta start over again this is the worst possible time to feel like you're forced in to buy something right because the market's called bananas meaning people have gone bananas they're nuts yeah i mean they're like running down the street and driving a stake in the yard this one's mine you know it's crazy the way they're acting and it's just a freaking house yeah i mean you can get you another one there's one on every corner uh but no don't don't settle don't cheap out because if you buy some kind of crappy something because that's what's available in this market you know what it's going to be when you get ready to sell it something that's crappy that's available in a hard to sell market yeah that's you're going to get stuck well and beyond that you tell me when you buy an ugly house at a deal you know what it is when you get ready to sell it an ugly house and a deal well and you tell yourself all these these fantasies like we'll just move those bathrooms we'll build an add-on garage and get a new roof none of that will happen and you set yourself up for so much disappointment when you're there it's such a good discussion though and that's why we're leaning on a little bit and giving giving a little bit more time because there's so much activity in the market so many people are feeling this listen if you feel like you're you're the temperature on your forehead is changing that's called house fever it's back away you know you need to go take a cold shower back away from the contract you know you're about to overpay you're about to buy something you're about to settle for something you don't like and that's everybody out there man you're just you're just an example of everybody that's walking around looking at houses right now uh the opportunity to overpay is legitimate and yes moving twice but you know let me tell you 10 years from now you won't even remember no you won't or you'll remember how bad it was but 10 years later who cares yeah we rented a house we sold our house after bankruptcy our kids were in these private schools we moved to another county to get in better schools and we rented the first time i'd ever rented since i'd owned okay and i owned a thousand pieces of property by then and gone broke right now i'm a renter that kitchen in that rental house it was a nice it was a big old house it was a reasonably nice house it was a great school system which was with the whole goal right and we cashed out of our other house and cleared up the rest of the last of our debt after bankruptcy paid off the stinking irs right but to this day when i mentioned that street name my wife's face gets a cloud across it and all she says is that kitchen that kitchen that kitchen that nasty brown linoleum floor that kitchen that kitchen because i mean she hated hey but she transferred to that house she transferred that husband to that kitchen so that's actually good for you that's that's good we broke and we were in that ketchup that's right that's right you're right she hates the completion instead of dating she kept kept the ire on the correct item yes that's good but i mean that's 30 years ago man it hangs with you and i've bought a house under pressure and i still did this day of regret that i did that it's still an ugly i put my family through it and i bought an ugly house it was still an ugly house when i got ready to sell it i've done that i've done it don't do it just take your time brother i know it's hard take a cold shower take your time this is the ramsey show [Music] [Music] [Music] so [Music] dr john dolone ramsey personality is my co-host today open phones at 825-5225 alex is in cleveland hi alex how are you i'm good guys good to talk to you you too what's up so i am 22 years old i just graduated from michigan state uh with a mechanical engineering degree i am a contract engineer right now so i i travel a lot my question for you guys is i i've got a girlfriend back at home and she's still in school but uh i'm i'm trying to save up for a house for us and a marriage and i'm wondering how to balance my relationship with her while also always traveling and always trying to save up for the next goal and i feel like i'm at some points doing one more than i'm i i'm uh focusing on the other one and so i'm i guess how do i put put my life in the balance where uh i'm enjoying my time with her and seeing her and should i move home where's home find a closer job uh my home is technically out of grand rapids michigan and you're in cleveland ohio and you travel what kind of range do you travel uh so i i'm on my way to york um stopped at a service station to talk to you guys uh but uh i i i traveled to pennsylvania i've traveled to kansas city um so three or four hundred mile radius yeah all right and you make what i make 160 000 a year how long you been out of school doing this uh since january okay wow that's not bad so man you're 22 years old and what i would tell most 22 year olds who are not married or untethered is to hit the gas on their career this is a time you can stack up and do really great and there's so much technology that you can stay connected to each other right now that even i didn't have when i was young and trying to figure this thing out the question is whether is this going to be seasonal for you is this going to be the rest of your life and that's a hard question you have to ask and then the other question is it sounds like you took this job and you are making unbelievable money for a 22 year old and you're starting to not like it am i am i hearing that right yeah i i i love the money um but i i i want to be sometimes i want to be close being on the road sucks today that's right yeah and here's what i don't want you to do i don't want you to use your girlfriend or your relationship to your girlfriend as the reason to cash out on this job if you realize i'm on the road all the time and that's not good for me it's not good it's not the life i want to live then i want you to own that decision because other you're going to run into money challenges down the road you're going to run into relationship issues down the road and then you're going to start resenting her for something that really isn't her fault you don't like the job you don't like the job right and it's a million billion dollars for a 22 year old um but yeah if the road sucks and it's killing you the road suction is killing you gotta do something else sure sure so how old how old is she what is she in school yeah she's uh studying to be an elementary teacher when graduate win yeah she's got a year left uh and then she has to do an unpaid year uh through uh internships uh at job site okay does this job you're in you says contract does it have an end you're you cut off you cut out try again it's contract do you have an end on your job um no they keep extending the contract which is fine by me um how long does the contract run about as good as yourself on the service okay um all right so what i what i would say is um for 160 000 a year if you want to see her you can buy a lot of airline tickets um and uh you know you fly over there and see her on weekends or whatever and you work this out you're making plenty of money spend some money on travel spend some money on connectivity and then just set a date certain because you're not going to do this for 10 years right inside a date certain are you going to do this until she graduates and gets through her one year or just until she graduates when are we getting married and you start setting in your mind anyway and you start going okay i can endure this for two years and pile up a huge pile of cash or i can endure this until christmas or i can endure this until whatever i think the i think the idea that it projects indefinitely into the future is part of what's driving you nuts but um and the road is hard right the road is hard it is not travel is only glamorous for people that don't do it and it's just not it's just you know it's just a hotel so god and uh yeah and if he's flying it's even worse because you got to deal with the dead gum airport people so i like the idea of coming up with a dollar amount here's what i'd like to have that's not bad and here i also like this idea a date certain or a dollar certain and then i'm out and i'm going to use this as an opportunity to learn from all these different bosses and all these different cities use this as graduate school man and if you approach it with that heart and spirit i'm going to work my butt off i'm going to make this kind of money and i'm going to learn from what i like about this guy what i like then you can set yourself up to what you want to do but if you just look at it as misery or if you blame her slash no you can't encourage her uh then man you're just setting yourself up i had to quit this because of balance with my girlfriend oh bullcrap you acquitted because you hated your job i like the job i own that man that's what he's saying but don't blame your girlfriends so yeah but i uh yeah i think you've got a two-year window something like that and um and i like to hey i like to see 22 23-year-olds grinding i really do yeah it's awesome there's nothing and making that kind of bank for a short period of time and again so spence get it get a date or a dollar certain uh figure out what you're gonna do when you leave this job and uh uh thirdly allocate some money for travel for uh to see her or her to see you and uh buy some airline tickets or whatever it is and um you can land this plane no pun intended with a hundred thousand dollars in cash in a bank or more 125 thousand dollars right when she finishes up her internship and then y'all can pretty much do what you want to do more because they're probably covering the road costs too greg's in raleigh north carolina hey greg welcome to the ramsey show hey how are you sir better than i deserve how can i help um i've got a question for you uh my mother is 93 years old uh just had to put her into assisted living a few months ago she had with dementia and we tried the home care option and it got to the point where she was needing 24 hour care yeah um she's in a good place my father was you know he's a past but he was very smart with money he did the long-term care insurance and it's helped a lot wow my question is aside from you know visiting her and trying to make the best quality of life for her what to do with her home uh she's bought a paid she got a paid for home about three miles away from me it's probably worth around 300 in a way i wanted to sit back and just you know process issues under assisted living for maybe two months on the other hand i've got people around me saying if you're gonna do it sell it now uh don't wait and uh i want to do what honors her and how how cognizant is she of this decision how much is she able to process it with you not um i would say no it's not okay so this is just your it's just your decision it's not gonna it's not gonna bother her because she's not gonna understand no no okay so what do you wanna do i don't know i wanna do i wanna honor her and that's my biggest problem i don't want to be a landlord i know that yeah i don't know that keeping the house is a method of honoring her or selling the house as a method of honor yeah you've backed yourself into a corner that's not real that's not a real that's not honor has nothing to do with this house unless you were hurting her by selling it okay or keeping it and you're not so not emotionally not financially not anything and so um you i don't want to be a landlord um i think it's just letting go of the past to sell it emotionally and that's very hard but i would sell it i would too all right and now's the time to do that am i right oh yeah for sure yeah for sure get it dolled up get a get a good go to daveramsey.com or ramseysolutions.com and click on elp for ram for endorsed local provider for a real estate agent in the area they'll help you max it out this is not a time to play amateur hour you need a pro in your corner and they'll help you this from this [Music] [Music] [Applause] stop paying your overpriced wireless provider and switch to pure talk they use the same network as the larger providers for much less for just thirty dollars a month get unlimited talk text and six gigs of data with no contract the average family saves over seventy dollars a month by switching to pure top just go to feartalk.com and enter the promo code ramsey to save 50 off your first month puretalk simply smarter wireless [Music] so [Music] in the lobby of ramsey solutions on the debt-free stage bryce and lisa are with us hey guys how are you doing good dad how you doing welcome where you guys live we're from wichita kansas ah welcome to nashville and all the way here to do a debt free scream i love the t-shirts i'm the nerd i'm the free spirit so we know who we're addressing here it's very clear up front very cool how much debt did you guys pay off 370 000 in five years whoa and your range of income during that time we started at 67 000 and finished at 167. wow what do y'all do for a living i'm a registered nurse and i'm a captain in the army wow thank you for your service appreciate your support sir thus wichita okay so i'm going to guess and say that might have been your house it was looking at weird people yeah we need the subtext on the t-shirt weird people yeah are on the back when you turn around yeah way to go man wow paid for how old are you guys we're 32. i have the paid for house you are truly weird that is awesome guys you won touchdown i love it what's this house worth uh last time we checked it was right around 300 000. how does that feel at 32 freaking years old and i paid for house it's outstanding dave feels great it's amazing congratulations it's a whole different place to be wow i got to hear this story what inspired you to do this five years ago so dave actually uh it started about seven years ago where where i married my wife and i took the responsibility of being a husband to heart and i wanted to lead my family and you know i ran across you on youtube being a finance major in college i gravitated towards the money aspect of it ran across you on youtube uh you know i got all inspired i was working late one evening and i binge watched a bunch of your videos and i came home all excited and i blew it i told i did everything you say not to do i told lisa we were going to get extra jobs we're going to not spend any money and we got to beat gazelle intense and she's like i don't even know what that means and uh what does that mean yeah so you need to stay off the caffeine when you're working overnight that's that's exactly right so um you know so it took a couple years your name was kind of a cuss word in the in the johnson household for a few a few years but uh five years ago the beginning of our story is when we when lisa informed me that our daughter milo was coming so all of a sudden her tone changed a little bit she brought me to the kitchen table and she goes you know we should really kind of look at our money situation and uh you know i think we should take fpu and i was like that's a great idea wow wonderful now that it's your idea it's awesome absolutely yeah it's a baby step it was and again my fault i totally uh barged into it but learn from my mistake everybody you go i love it way to go so um so you signed up for financial peace university what a local church or we did in fargo north dakota originally that's where we're from originally and uh we did went to a local church there with a friend paige and zach and we took fpu and from there we were rolling in the same direction and our communication improved and our marriage just went to new levels so lisa after you were abused with the dave ramsey stuff ahead of time then baby's on the way so you go okay grown-up time i got to get serious and you come into the table so i'm going to do this was that hard to say i want to put those words out of your mouth let's go to financial measures it was very hard i wasn't ready to be weird yet ah okay so when you went to class how long before you started going i think we might really should do all this i mean really i mean you started kind of buying in like first class or eighth class or it was it was the end of the class by the time i was like all right i think we can do this and right after milo was born he was actually deployed and that's where um i really realized the sacrifice he was making for the family and i was like okay i better get on board a little bit more with this oh wow and that's where we really hit gazelle and dave i gotta say too she was a total trooper while i was deployed so she as a nurse with a newborn baby with me gone she was working night shifts weekend shifts wow she was still she was all in at that and totally or totally bought in at that point and uh our grandparents that her grandmother's grandparents um helped with taking care of her during overnight shifts wow things of that so lisa just was a total trooper she jumped right on wow way to go you guys but the net result is no payments in the world i'm trying i'm sitting here trying to figure out what was harder for you to eat a small amount of crow and say let's take fpu or for you the military commander to be told what to do and you say yes ma'am i'm all in right i don't know which one had it hard it doesn't matter right it doesn't matter and hey by the way you you guys didn't just get out of debt you guys set out from the beginning we're going all the way with this thing all the way jo we we we took dave baby step seven the same way we did baby step two we just kept our foot on the gas okay um and we said we're not going to do our debt free scream until we were 100 complete and what what kept that motivation going for your three year four year five i think the well biggest motivation was us dreaming together okay uh once she was on board she all of a sudden at the kitchen at the dinner table we were talking about it every night you know what what happens when we pay the car off uh how about when we pay the credit card off when we get our emergency fund how good is that going to feel knowing that every speed bump in the road is just a speed bump it's not an emergency that was my that was my aspect of it my perspective so you you took data and tied it to emotion and tied that emotion back to data and you just kept working and working and working and working kept dreaming for what was next i love it i love it yeah lisa uh uh not counting each other who were your all's biggest cheerleaders um we had some friends and family and not a lot of us knew about the journey we were on but they were supporting us even though they didn't know it helping us watch myla um just in any way they could so we could to get it done yeah an fpu class had to be going yay raw oh absolutely yeah we actually uh so five years later i emailed our fpu coordinator back in fargo after we moved around the country a few times and he emailed me right back and said that was amazing he gets emails all the time from previous classes on how they succeed and how much they've paid off and everything so we actually coordinate an fbu class at reliance community church in wichita kansas wow thank you oh yeah and it was great we had some great couples attend that and uh we all got to know each other and and experience a little life together so very nice so myla must be five she's four and a half four and a half okay and you brought her with you yeah and i love the t-shirt check this out oh myla is the why i'm the why you're gonna get me all teared up on a monday wow i'm the nerd i'm the free spirit and i'm the why i'm why my parents did this to change our family tree you guys are absolute rock stars i am so proud of you that is such a beautiful thing to meet hero couples like this every day this is incredible i appreciate the encouragement just to me and my family personally inside and outside of this adventure is extraordinary thank you absolutely very very well done so awesome well we've got a copy of the legacy journey because you have definitely poured on a new legacy here and uh copy the total money makeover for you to give away and encourage somebody else with it so very very well done you guys so beautiful so beautiful and she's cute as a button too very fun all right bryce and lisa and mila wichita kansas by way of fargo 370 000 paid off that would be the mortgage and everything we're looking at weird people they did it in five years making 67 to 167 including deployment including lots of nursing ot well done you guys very well done you're free you'll be able to do anything you want to do 32 years it's you won guys i killed the better man i already won the super bowl i love it all right count it down let's hear a debt free scream three two one that's how it's done right there man that's inspiring i don't get to see a lot of smiling families on my show dave this is incredible just incredible you get some of the smile after you told them how to straighten things out man you cannot be driving in your car right now listening to this and still have an excuse left you can't you really can't i mean it's ridiculous you can't you're you're either gonna you're either gonna be on the sidelines or you're gonna be in the game you're gonna decide them in or out yeah you gotta get the game you gotta do this i mean they're 32 years old and they were deployed and working night shifts and had a newborn and had to talk to parents and had to figure it out and figure it out and figure it out and they looked up and five years later they don't owe anybody no excuses none no whining solid get her done i love it man what a crew this is the ramsey show [Music] [Music] dr john dolone ramsey personality is my co-host today jacob is in knoxville hi jacob how are you [Music] doing well how are you dave better than i deserve what's up uh so i am on baby step four and have 25 000 in my emergency fund i'm 29 i make 130 000 a year and i have a side hustle that i'm going to talk about here in a second but i currently have 54 000 in my 401k and i put in 12 my company matches 4 and also puts in an additional four whether i contribute anything or not great uh and so the 401k has like has awesome mutual funds i'm very happy with them um and so the situation isn't like to get to my question uh i started doing a dave ramsey-ish last summer i thought i could i'm in sales so i always thought i could kind of out out earn my dumb decisions so i never got super intense until recently but what i did do then it back then when i started uh listening was start a side hustle so since last july my side hustle has earned me 156 000 wow not bad and for yeah and it should well outperform that um next year i got a product i created um into like 400 some source so it's doing really well and so my question my question is around retirement funds so i know you always say that uh do 401k first then raw and then traditional to get to the 15 and um but i cannot contribute to a roth making over 139 000. i know you can do a back door raw but since i like the way my 401k is invested i was wondering if it's better just to stick with the 401k instead of worrying about doing a backdoor roth or if it still makes sense to well if you can get to 15 you putting in 15 of your household income are you married i have a fiance okay you're not married not yet okay so no you make what at your day job uh 130. okay you told me that six times i'm sorry and then you made 156 on the side gig yes yeah so um you know that that puts us at 280 000 that you need to save 15 of okay you can't do that in just a 401k you can't get there because you're maxed out at night you're maxed out at 19 and some change and so you're going to max out your 401k you're going to max out your roth ira and you're still not going to be there and so you what you're going to do is you're going to sit down with a smart vester pro in your area and um and they're going to talk to you on their side gig do you have any employees i do not so you can do a cell phone you can do a sep over there and that'll get us up and you can do all of these in roths okay so you're gonna do a back door you're gonna do a sep and you're gonna do a 401k all in roth and you're gonna take your match over at your company all they'll give you and whether you know all the match they'll give you over there you're gonna max out every bit of this in order to get to 15 of your household income going into retirement now if your side hustle ever goes away obviously you're going to reduce what you're putting in because each year you're going to put in 15 of your household income but the sep the sep roth is the way to go over on your side hustle so it's a very easy way to do it with no employees now if you've got employees it starts to get really complicated to pay in the butt but um so go to ramseysolutions.com and click on the smart vester pro click on smart vester and get a smart vista pro in your area to sit down with and let them walk you through doing the back door roth and you'll do your own max out on your 401k and then they can also walk you through setting up a setup a simplified employee pension plan okay let's say what's what's a set and it's you can do up to uh uh 13.2 i think so formula actually ends up working out but a large percentage of your net profit on your business you basically create a pension plan for yourself exactly it's another it's a little it's a 401k for a single operator okay all right is what it amounts to if you have employees that have been with you more than two of the last five years uh you have to put the same percentage of their income in so it's not very good for a small business that has employees okay for a solopreneur like this it's very good excellent excellent for doing that and i actually did one with this business when i started it was just me wow and then the uh you know once i had been open uh five years then i had employees that had been with me more than two of the last five i truncated that puppy and okay went to different direction on retirement savings but uh that's the way it went dave is in virginia beach hi dave welcome to the ramsey show hey guys thank you for taking my call sure what's up i am a 15 uh 51 year old single no kids i'm feeling stuck in a rut and wondering how to get better traction the job looks stable for let's say the next three years looks real solid with the contract income is about 69 000. we got about 12 000 in checking a rut on what what kind of rut yeah what do you wrote a career right a psychological run a relationship right it's pretty much a financial rut okay and let's see 401k i've only got about 62 000. oh 10 500 on a car and 45 000 on the house where do you want to be where do you want to be with your money i just really i'm almost having anxiety about getting out of debt yeah why as quickly as possible you mean you're having anxiety that's telling you to get out of debt or to not to get out get out of debt to get out of debt okay so the debt is bothering you that's good anxiety okay yeah i mean i guess it is good it's an alarm telling your house is on fire and it is right yeah you're right so you have a ten thousand dollar car debt what other debt house 45 whatever um house uh that's it but i do have some upcoming uh remodeling expenses like a new roof and a few other things i'm thinking that's gonna be about sixteen thousand what do you mean off on it till uh sixty nine thousand without overtime i make more when there's overtime available what do you do i do design work computer design okay cool good for you she got side hustle available to you if you wanted to as well all right and so let me get this straight 55 000 plus 16 for the rehab uh would be like 75 000 we'll call it all right changes your whole life it lets you breathe and it lets you sleep right now your house is paid off your car's paid off and your house is rehabbed you don't have a payment in the stinking world you make 70 grand a year it changes your life doesn't it yeah so we need seventy five thousand dollars you're a single guy making 51 oh there's 51 that's making 70. if i need 75 that's 35 a year for two years that's overtime on top of overtime hitting the gas having some fun not much how's this working knowing i'm working towards the goal oh yeah totally yeah that's the end goal is fun but right now for two years you don't have a life you do beans and rice rice and beans and all you do is work and you become completely debt free with your house rehabbed and you're 53. i'm already feeling better in that contract you're worried about going away in four years that that contract you're worried about going away in forty four years it doesn't you're debt-free right yeah yeah that's a good point and if you don't have any payments in the world could you actually start doing some investing and become wealthy answers yes yeah absolutely i know that and when you're not so anxious and knotted up and tied up could you go hang out with some other people get connected to a community have some fun yes yeah yeah probably so not probably 100 percent yeah yeah you're right you need to do that but that's why we call it financial peace two words that don't go together like fouchy math right okay so all right so 35 000 a year for two years yeah you can do it and i'll help you i'm going to send you a copy of the book the total money makeover it's going to show you exactly how to do this step by step okay oh awesome dave i appreciate that big time you hang on kelly i'll pick up we'll get you going call us back when you're debt-free and tell us about your journey i want to hear your success story you can do this man yes i think you just need a little bit of a clear path and uh you're the man you're gonna get her done baby that puts this hour of the rims he's showing the books good good hour john thank you dr john bologna james charles is our producer kelly daniel is our associate producer and phone screener i'm dave ramsey your host and we'll be back [Music] this is james childs producer of the ramsay show did you know the ramsay show is one of the most popular podcasts in the world subscribe or follow today wherever you listen to podcasts [Music] you can have money and a career you are the hero in your story live from the headquarters of ramsey solution broadcasting from the dollar cart rental studios it's the ramsey show where that is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice i'm dave ramsey your host dr john dolone ramsey personality host of the dr john dolone show is my co-host today on his show he talks about anxiety mental health issues of all kinds boundaries relationship questions so we certainly will weave those in between the retirement questions today like they fit or something but we will anyway and open phones at triple eight eight two i'm pretty anxious about retirement dave two five yeah we'll find out what anxiety is when it comes to retirement or something like that but hey if you wanna talk to john this is your day to do it or or you can call his show at 844-693-3291 and have a chance to have your question featured on the show or you can email in at askjohn ramseysolutions.com to start off this hour lisa is with us lisa is in saginaw michigan hi lisa how are you hi hi how can we help my mom passed away a little less than a month ago oh my i'm sorry thank you i have um five siblings one is diagnosed paranoid schizophrenic and then i have two that are pushing to sell my mom's house right away and two that want to hold on to it for a few months to let it sink in and they don't want to rush it getting rid of stuff and and they're both sides are putting me in the middle and i don't know what the right thing to do is i'm sorry is there a will yeah but who will just state that when she passes that you know the house will be sold and it goes um it's split between us yeah okay but it doesn't say you know who is the executor of the will my my sister that wants to hold on to it till for you know a couple months at least or and then my brother that lives out of town once i hold on to it for a couple months because he wants to come back in the summer [Music] my one sister she's saying she wants to sell it while it's hot market and my other brother wants to have a think about selling it to his stepdaughter which i already know that answer is right off the bat no way right i'm so sure i mean his wife couldn't even come to the funeral so i'm not letting it go to her family yeah i'm sorry how old are you guys what's the range on your siblings youngest and i'm 51. and the oldest day now we're losing lisa lisa are you there yeah okay you cut out the oldest the oldest is one oldest is what 64. okay 64. i'm going to give you i'm going to give you the answer and then john can fill in the cracks uh from the emotional standpoint as well the answer is it's not up to you you don't have any say in this and neither do your other brothers and sisters the will is very explicit and very clear the executor of the will they are called executors because the word means execute they are to execute the will what the person's will was what the person desired that passed away your mom's will gate named an executor and told them to sell the house that is what will occur and it's not up to you and it's not up to your other brothers and sisters they don't get a vote this is not a democracy they don't get a say and so the executor is being wise and saying we're going to wait a couple months and let this kind of calm down let folks have time to come in and pick up an item out of the home for nostalgia purposes let people have a little bit of room to execute the market's not going to cool off in two months it's okay that's kind of what my first impression was okay but it's not up to you the other one starts pushing and pushing the other one the other one's pushing because they're broke and they want the money yeah that's the only reason they're pushing but they don't have a vote so i think your job is to encourage your sibling who is the executor to do what the will says and do it with wisdom and grace and kindness and that's all their job is nobody gets to decide anything except the executor by the way the executor doesn't even get to decide anything their job is not to decide their job is to do what it says to do it's to carry out to execute to carry out does that make sense yes and that takes a lot of pressure and a lot of emotion off of everybody once all of you understand you don't have a vote that's right there's a a unique role somebody can step up and play dave's right the will says here's what's gonna happen to that house and here's who's gonna make that decision so that's that's written somebody can step up and that might be you and say this has been determined and the person who will make this final decision is the executor all we can do is choose to support her or to tear this family apart and i for one refuse to tear this family apart over a couple of months over some nonsense and everybody grieves differently i grieve by trying to go solve everything other people i care about grieve by just wanting to sit and absorb everybody does that differently dave's right one of them is going to be one of your brother sister's going to be broke and need the money the other one wants it for their family everyone's got these ulterior motives but the end of the day they're all grieving and so if somebody steps up and says enough i've heard everybody's opinion i'm done listening to you talk bad about my older sister i'm done listening to talk about why your stepdaughter needs it done i refuse to engage in this conversation when she's ready to sell this house we'll engage in that conversation and then you can call her and say i've got your full support i i'm fully supportive of how you want to do this and um you want to put the house on the market in two months i'm in full support of that and i'm i'm done with the conversation period and you can send a strong message through your brothers and sisters at this type of backbiting and um hurting each other cutting each other we're done it's over y'all can do it amongst yourselves but you're not gonna include me and i will not hear it with my older sister it's the the difference in you getting the money now or you're getting the money in two months is not worth destroying relationship with everybody in the place that's right and that's the message for the sister that's or the sibling that's broke and wants their money and if the stepdaughter wants to buy it and pay full market value and go get their own mortgage and not and just be a normal buyer they're more than welcome but to the extent that they get a special deal the answer is no right yeah i think he wants to give her uh a discount yeah i'm sure and that would be the paranoid schizophrenic's daughter right no no okay i was just guessing okay i missed all right but uh yeah that's you know this this is the stuff that how fast this is how families play together but john's exactly right just um just throw your throw your hat in the ring and support and just call everybody to unity and love this is what mom would want mom would not want y'all all fighting over two months we hear you want to sell it now we're not gonna so stop [Music] [Applause] [Music] [Music] if you've ever made a dumb decision with zeros on the end because you didn't have the research done well that would make you like most of us me too most people make choices based on feelings or opinions especially when buying a house but when it comes to this real estate market this is uh it's not an amateur hour feelings are uh not your friends facts are your friends dr john dolany says that all the time so find out what you can actually afford not what you like research what's trending on home prices talk to a real high octane real estate agent in your area to get the facts get with one of our elps go to ramseysolutions.com agent get an agent who will help you make smart decisions because they have a proven track record of dealing with this market ramsey solutions.com agent our question today comes from blinds.com they have a 100 satisfaction guarantee that means even if you mismeasure you miss you pick the wrong color you mess up they'll make your window blinds over for free you get free samples free shipping with the new promos they run all the time you save even more the promo code is ramsey all right today's question comes from cassie in wisconsin my husband and i recently decided to move closer to family but since making that decision my sense of security is crumbling we lost two businesses when the pandemic started we sold our house for a good price however the area we are moving to is more expensive we are completely debt free but with the current economic landscape i'm freaking out that we're putting ourselves in a shaky position how do we know that we haven't made a huge mistake hmm dave how do you tell somebody to know if they haven't made a huge mistake i kind of have a default answer to that but before i just throw it out there i um you know i it's not permanent you can undo anything you're doing like if you go there and it doesn't work out you can leave that's how do you know you haven't made it so it's not a huge mistake you might have made a mistake yeah you might screw it up you don't know but is is it life-threatening no no is it going to ruin the rest of your life financially no not unless you stay there in the middle of the huge mistake but if you get over there and it's a mistake then you leave yeah um but um i can't tell what all's going on here uh if you sold everything and you lost your business and you don't have any incomes and you're moving to an expensive area that would be like a good thing for you to be freaking out because you don't have any income right you should be freaking out uh but that that's going to happen if you stay where you are you don't have any income so the lack of income that i think i'm reading here is um you know you're debt-free but you don't have income right you still have to make money even when you're debt-free and i read this more i'm i'm assuming that they've got they figured out they got to get jobs i read this more as something that's happened to me several times which is i know what the right decision to make is and i make that decision and i still wake up in six months and you get that do we do the right thing and you just feel like you're on unstable ground so you got to circle back to again those the data right the facts why did you do this in the first place is it the right move yes it is you probably woke up and you don't have any community anymore and you got to go make friends again and you got to go figure out all those things that are not fun to do but that slowly help your feet settle into the to the sidewalk right well and you decide to move closer to family and the great news is you're closer to family the bad news is you're closer to family that's right but i might be sinking into the fairyland view of being near her mom might not be quite mom's nearer to you oh my god but i've left his jobs went somewhere new i knew all the reasons why i left that job and then dave whenever they finally replaced me at that old position i think oh for i don't know why it just gets me a little bit and other the the world keeps turning without me there yeah you really realize you're it's not yeah we can exist with that or old employees call and say hey that cool thing idea you had they just changed it now they're doing something else it's three four years ago i still think oh man that was a good i i suddenly realized i had a little bit of my identity still attached back there right well that would be human nature that's right and so i gotta acknowledge it and then i gotta realize i live here now and as you pointed out how do you know it's not a mistake you don't so live into it make the best of it it's an adventure you realize it's not great move it's an adventure baby this is how it works yeah i think that's true and you're debt-free you set yourself up for this kind of move right yeah there's a uh an old movie i think it was called parenthood with steve martin oh yeah there's a bunch of one-liners in that thing that are fabulous uh but at the end of the i mean he goes through all this turmoil with family stuff and it's just driving him crazy all this anxiety all this angst and jobs and loss and all this i i mean i don't even remember what all it is but it's like a constant the whole movie is a constant state of crap and at the end of it he's getting on a roller coaster and he's right he's riding the roller coaster of life is the metaphor and he's enjoying the ride that's right with the ups and the downs and it's a beautiful scene at the end the beautiful metaphor for the whole thing because that is parenthood yeah yeah it's gonna be you know that is moving close to family that is changing cities it's an adventure so i it's still let's say let's say you move um from uh what the city you're in and you move to the more expensive place and two years from now you're miserable uh economically it's not working out relationally it's not working out and it we would if you want to call it a huge mistake you can call it a huge mistake if you just want to call it a mistake we could call it a mistake so two years from now what would you do what could you do uh load up the truck and move back right or go somewhere else or start a third possible city right that's the beauty of america it is still as many many people don't agree with this but it is still free yeah and you can just decide i don't want to live in california anymore right and a whole bunch of people did and they left oh man they did yeah and i don't want to live in new york anymore and a whole bunch of people did and they left right and uh you know and i don't want to live near my mother and you leave right and i do want to live near my mother so you go right and you you know these are options you can just decide and they could so the cool thing about a decision is if it's the wrong one make another one yeah and just because it's uncomfortable doesn't mean you made the wrong decision right and we see that with 100 of change is going to be uncomfortable there you go we see that with breakups with moves with new jobs they're always uncomfortable right and we we often we're so obsessed with our feelings that we feel less than what we imagine perfect is going to be we think oh we screwed that up no you didn't he didn't right it's going to be uncomfortable for a season until you get friends to get a community to get a church do you all find your date spot to you find the place where everybody knows your name whatever those are and or two years you wake up and realize this isn't the right move for us yeah let's get out of here one of our operating board members wrote wrote our ramsey newsletter last week and the whole opening thing was i hope this week has been uncomfortable for you yeah i hope this week you've had conflict that was healthy yeah i hope this week that you've been pushed to be better i hope this week you've been unde and the uncomfortable conversation pushing someone else to be better i hope this week that you've gone outside your comfort zone and it scared the crap out of you i hope this because otherwise you're not living that's exactly right yeah we are addicted to comfort in our society yeah addictive that's very very good stuff very good stuff so hang in there cassie hang in there yeah make the move it's an adventure ride the roller coaster do it have at it and if it's bad just undo it yeah just go back you're debt-free for a reason i don't know if i should pay off my house i don't know i've got the money in my checking account i don't know if i should pay off my house pay it off pay it off if you hate being debt-free you can go get a mortgage people people don't do it but if you get in there and you go you know this is the dumbest thing i ever did i hate being debt-free i can't stand it i really enjoyed having that mortgage payment i want another one the mortgage company will sign your butt right up that's the beauty of america you'll be right back in there in no time if you pay off all your credit cards and cut them all up and you don't you don't uh like it they will give you another one there'll be one in your mailbox tuesday don't worry about it you'll have another shot oh my gosh i'll give a dead person and a dog a credit card so definitely give you one oh lord this is the ramsay show [Music] [Music] [Applause] [Applause] [Music] what makes our show unique is that we genuinely care about our listeners we're intentional about choosing the best advertisers to recommend blinds.com is no exception they offer high quality window treatments at unbelievable prices and they make it simple to shop blinds shades and interior shutters with easy online ordering free shipping and a guaranteed perfect fit go to blinds.com and take advantage of this week's special savings [Music] [Applause] in the lobby of ramsey solutions on the debt-free stage caleb and danielle are with us hey guys how are you hey dave you're doing good welcome where do you guys live indiana princeton indiana princeton near evansville evansville all right cool well good to have you guys thank you and all the way to nashville to do a debt-free scream that's right and how much did you pay off forty six thousand five hundred eight hundred and fifty seven so okay all right very good and how long did this take uh 28 months 28 months and your range of income during that time 60 to 80 000 cool good for you guys what kind of debt was the 47 it was more more like uh normal stuff like credit cards medical bills car loans student loans student loans being the biggest chunk so you were just normal yeah a little bit of everything just bopping along how long y'all been married uh since 2016. okay so five years yes all right and of that five years two and a half of it almost was spent getting out of debt so you were married a little while and you look up and go this is no fun no so tell me the story how did you get connected to us what was your inspiration on this um well a little back story we're coming from different families of how we manage money some of them just don't know how to do it right some of them are just organized and we just came together as like a clump when we got married we were like we don't want to live in debt i love plump that's what most people do yeah we don't want to live in debt so we were like okay what can we do so we struggled along when we first got married we're like we're going to try and figure out how to pay it off we just got a credit card started using that for a little bit um come in 2018 we go to church and our church was holding the financial piece university oh there it is so we're like hey let's just do this we'll try it and i'm being the free spirit i'm like i don't really want to be told where my money goes and he's like i got this so i was like okay we'll just go through the class we did it um a little bit probably it was in november of 2018 in december of 2018 that's when we first started like let's hit it hard we're going to start with his student loans paid this car off we cash flowed three cars during that time we had a baby during that time wow so it was just like let's get it done um covet happened so they kind of put a pause on it yeah but we were well everyone was spending it buying tvs and everything we put it in what we call our own emergency fund and called it the coved fund so i wouldn't touch it because i didn't want to spend it on tvs or a new car or whatever and that's what we used as my student loans you've had a problem with tvs in the past tvs radios anything cool i'm just trying to get that bigger size tv now and then i always wanted something bigger yeah it's awesome so we just finally just got to the point where like let's just get it done i'm tired of being in debt and i want to change my family tree way to go so the class gave you the framework yeah and then you go through the struggles of the ups and downs and the kovids and you push on through and knock it out yeah how's it feel now that you did it different it feels like a weight's been lifted off that's for sure yeah it's nice not having student loan companies just hounding you for uh monthly payments each time and realizing being on the monthly minimum payments that you're hardly getting anywhere because the interest is already catching up almost the exact amount we have extra money we're like what do we do with it now yeah you feel like you got a raise yeah yeah you got control of your most powerful wealth building tool now your income you guys are amazing way to go rock stars how is your marriage different we it worked on a lot of the communication part of it it was more like i'd sit there and try to hide money from them when we first got married like oh i bought this and it's brand new and where'd this go where'd this come from and i was like okay so we just sat down with like let's budget together let's talk together we started talking more and communication more we're able to talk a lot better and we don't have the fear of oh no what did i buy and what is he going to get mad at kind of thing we're able to be like okay i can buy this okay target bags under the bed yeah oh my gosh in the closet yeah hide in the trunk yeah yeah that's powerful full disclosure there's a clinton list to that there really is there's a simplicity to uh having it all right there yeah and you don't have any any side deals going anything else it's it's really really clean good for you guys very good so your financial piece and university class cheer you on were they cheerleaders for you they were they were a big uh part of it we um went through it again just this like during covet just to try and get a refresher and be like okay let's keep going good and uh the coordinator for it was really proud of us when we came to church and was like hey guess what we paid it all off oh it's awesome so yeah very good you guys very good so what do you tell people the key to getting out of debt is now that you've done it i would have to say that sitting down together and actually discussing everything in regards to where the money needs to go actually writing it out and following it you know basically making your own road map and working together to figure out where the road bumps are that you got to start planning for on the side as well as keeping up with your regular utilities and mortgage and everything else and keep it visual so you can see where your goals are going so you can see what you're going to do so when you start paying off your debt you can have like a pie chart in a way and color that off okay we got there okay we got this and then just keep going that's good so how do you encourage families with young kids when they're in the middle of this and a pandemic and homeschooling and it's crazy but just start it and once you start going you'll you'll get to the momentum where you like you see a change you see it and you just keep going i've heard a rumor that if you don't buy your kids everything they want they still manage to survive is that true apparently they're still standing there right here i get hated a lot every single day but i'm like it's not in the budget our four-year-old now she used to sit there i used to say well it's dave ramsey's fault [Laughter] so she started saying it's not in the budget it's not the budget anytime we talk about this this is why this next generation doesn't like me yeah but i can't wait till she starts dating someday and looks at somebody and says that's not in the budget exactly you've wired it in at a young age i love it yeah where'd you get that money yeah that's so perfect well well done you guys we're very proud of you excellent excellent job heroes man you took control of your life you're debt free 28 long months and you brought the three kiddos with you what are their names and ages aidan is 10. uh presley is four and ryman is gonna be one gonna be one at the end of the month oh wow okay cool we've got a copy of the legacy journey for you that's the next chapter in your story to go complete the uh changing of your family tree and of course the uh he's pulling mom's hair that's great and uh of course the total money makeover for you to give away as well so caleb and danielle aidan presley and ryman they got their hands full evansville indiana 47 000 paid off in 28 months making 60-80 count it down let's hear a debt-free scream three two one [Music] yeah that's how it happens right there oh that's seriously fun man that's amazing that's very well done you guys very well done i mean you got three littles that size it's chaos it is you know a day and what month what year it is you're trying to homeschool everybody and still keeping that that goal in mind and keeping enough like that last shred of sanity to say nope not in the budget we gotta keep doing it we're gonna keep going we got a bigger goal of sanity it's the last boundary we cannot cross it's not in the budget wow so you remember uh a thousand years ago before there was much facebook there was a thing called myspace yes so the dave hater club goes all the way back to space there was a teenager group on myspace titled i hate dave ramsey and it was all the teenagers whose parents were doing our stuff and they were told no it goes all the way back those people are now 35 years old hey if you were a part of the i hate dave ramsey myspace group yeah and you're in your 30s please write in kelly what happened let kelly know yeah we'll we'll put you on we'll do like a whole i hate it i used to hate it maybe you still do and now i'm debt-free maybe you were trained at an early age to hate dave ramsey and it stuck with you yeah well maybe your parents used me like she did as an abusive tool that's right as a woman dave ramsey saying it's not in the budget it's dave ramsey's fault that's what she said it's dave ramsey's fault that's right now i'm going to go out there and those kids are going to hit me they are going to break yes that's what's going to happen her son is eyeballing you right now he's like oh that's fun well there's a lot of things i get blamed for that i didn't do but i did do that you did do that and one day when she recognizes what a changed family tree looks like and just how different her childhood was than her her friends in school she'll say ah that day wasn't so bad after all yeah my mother my mother she said it's not in the budget i remember my mother her mother's the hero yes right that's it her dad's the hero this is the ramsey show [Applause] [Music] so [Music] [Music] our scripture today proverbs 11 24 and 25 one person gives freely yet gains even more another withholds unduly but comes to poverty a generous person will prosper whoever refreshes others will be refreshed margaret thatcher said no one would remember the good samaritan if he'd only had good intentions he had money as well yeah poor people are generally not fed by poor people starving children are not fed by poor people generally speaking that's how that works so the ability to live like no one else so that later you can live and give like no one else is the highest calling of money it's the highest calling of this subject matter we deal with around here if you're a business owner or leader listen up financial wellness benefits are the thing now in the wellness space you're no longer really optional the team here at ramsey solutions we just did a survey a piece of research and found that half of all employers say their employees are stressed about money but only 18 percent feel responsible for their employees financial well-being well no one's responsible for someone else's well-being as an adult but you are responsible as an adult as a business leader to pour into your team money stress if it's following your employees to work every day it's killing your bottom line and it creates turnover missed work lost productivity even possibly dangerous situations because someone's not concentrating in a manufacturing setting you got to fix this if you're leading out there get our team's report for free and learn how to make it right text wellness to 33 789 that's wellness 233789 dr john deloney ramsey personality is my co-host today uh huda is with us in winchester virginia hi huda how are you hi uh good evening thank you for taking my call sure what's up uh i'm going to start a new job in august and they are offering me a retirement retirement plan it's um the hybrid retire retirement plan this plan has two parts the first part is the defined benefit plan and the the other one is the defined contribution plan i don't don't understand how they work it's my first time um uh having a retirement plan i'm going to work in the walking school system okay all right well the defined benefit plan uh you don't have any choices in they're just gonna do it uh the other is optional and i would not do it i would do roth iras in good mutual funds before you invest in their retirement plan and if i decided to choose there what is the difference between the um uh between the roth ira are um and the other one you have control of what it is invested in and it grows completely tax-free when you put it into a roth ira you don't have any control in a defined benefit plan of any kind it is defined by someone else not you thus the phrase defined benefit plan uh it is a on the benefit side it is a benefit meaning they're giving it to you so obviously we take money that's free regardless of if it's poorly invested or not uh but not free money money that you have to put in a defined contribution that means you contribute no thank you i'm not going to put money in something i don't have any control over and is stuck there when i leave so not really a good plan i avoid those they're not the end of the world but it's not where i would put my money if i woke up in your shoes pretty simple megan is in san antonio hi megan how are you i'm good how are you better than i deserve what's up um so i i'm 44 years old and i've um already saved a pretty good nest egg i had a goal of saving a million dollars in my retirement by the time of 40. and i finally hit that at 44. where'd it go 44 44 year old millionaires yeah very very nice um but my question is um i do still have a car loan and a home mortgage um and i'm starting to think about potentially investing in like rental property and i'm wondering do i need to you know pay off my car and my house before i start saving yes okay and then after that save to purchase a rental property property with cash excuse me sakulakali that's what i did okay several hundred million dollars ago that's what i did very nice i got out of that after i went bankrupt started over never borrowed again got our house paid off used all of my income to pile up and buying a rental property then pilot and buy another rental property then pile up and buy another rental property and every time you have a paid for rental property you know what they make next year a lot of money because there's no payments on them and every time you have another one you can buy another one even faster it snowballs in your favor this time so you are apparently making bank what do you make uh well i make 130 but i am one of those people that have i feel satisfaction from seeing money in the bank so i started saving early on um and i'm still putting about 20 of my pay into my retirement i guess that was my next question i would temporarily stop that now that you're a millionaire uh you can't really use that money at your age i'd temporarily stop that and clean this car in this house up uh do you have any uh you have any emergency money at set aside at all i've got my savings of around four grand four thousand dollars is your tire is your entire non-retirement savings yeah you had a singular focus girlfriend wow wow you had a goal and you were pedaled to the metal on that goal i'm so proud of you though yes it won't take long to clean up the other you've got 130 000 income i would temporarily stop because can you sense for just a second if i just speak it it hasn't happened yet but can you kind of breathe in what it's going to feel like to have no car payment and then take another breath would it feel like to have no house payment to go with your million dollars right that'd be amazing yeah because it set you up then to go go to the next level on the wealth building because here's the thing oh man the numbers are astronomical yeah here's the deal your retirement i assume is invested in good mutual funds yes okay if you don't add to it at all it will double roughly every seven years okay so you're 44. did you hear that voice yeah really so you're 44 at 51 it's two at 58 it's four at 65 it's eight if you add nothing to it oh okay okay so that's why i'm okay with you temporarily stopping for a moment here and knocking the house out okay so we know that that's going to happen in addition to that we also know you're going to do some additional savings because we can't stop you from doing it it's how you're wired that's a wonderful thing by the way so if you do additional saving and investing including buying rental properties with cash and so on i would project that fairly conservatively if my 8 million was accurate on just the doubling right is it fairly conservatively you're going to have 20 million dollars when you get to 65. oh god we see this is what happens when you hit this this stage but now one component of that is you can invest even more you know i throw money like when my house is paid off i throw money in an index fund just to pile it up to pay cash for rental property okay okay if you put it you save it in an index yeah i just throw it into a mutual fund until i have enough to buy a house or buy property that creates income okay okay and then you go buy another one then you go buy another one then you go buy another one and of course every time as i said every time you do that you've got that money freed up so you could sit there and put 20 into retirement and put your house payment plus 2 000 a month extra into this index fund to buy rental property with pretty quick and see now we've added a whole other dimension to the 8 million because we're back to saving 20 percent and that's how gotcha that's what got you to a million to start with so you've done you've set yourself up if you play this through to go to the next level the first level of wealth is one to five million dollar net worth you've blown that out of the water because of your age you're gonna i mean you really screw this up you're gonna beat that up okay but if you don't screw it up you're going to go that next level which is deca millionaire 10 million or more really and you really if you'll focus just a little bit you're going to be at 20 million and megan will you do me a favor will you have some fun yeah i well it's hard like i have been trying to travel more and good good yeah money is for generosity enjoy your life for fun and for investing so that you can do more generosity and more fun yes enjoy your life too that's all it's for there's only three things you can do with it john dolan incredible man what a neat lady very powerful way to end the day love it way to end this hour james charles is our producer kelly daniels our associate producer i'm dave ramsey we'll be back before you know it in the meantime remember there's ultimately only one way to financial peace and that's to walk daily with the prince of peace christ jesus have a friend or family member that needs a daily dose of ramsey advice in their life let them know about the ramsey call of the day podcast it's a quick hit of advice about life and money in under 10 minutes check out the ramsey call of the day podcast wherever you listen to podcasts [Music] you

Channel: The Ramsey Show - Full Episodes

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Id: sjg1LDhdHBA

Length: 121min 55sec (7315 seconds)

Published: Mon Jun 07 2021