Decide TODAY to Change Your Money Habits!

ramsay show you can be intentional about your character you can have money and a career you are the hero in your story 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 dr john deloney ramsey personality best-selling author is my co-host today so we will be talking about your life and all of your problems because he's good at that and we'll also talk about your money because i'm here and we're glad you're with us thanks for hanging out you're good at that well you are good at helping people with their problems i'm going to give you that i'm going to give you that one you're good at talking about money i am i've it's worked out for me it's working i'm hoping it's going to be a career working out for you you hang in there dave and you keep working hard like a hair and a biscuit all right open phones at triple eight eight two five five two two five you jump in we'll talk about your life and your money jana is with us in orlando hey jana what's up hi thanks for taking my call sure how can we help um i have a real estate money question we with my husband's job going mostly remote we have the opportunity to move back to kansas city which is our hometown from florida where we've been for about three years and so moving back towards family and we have a paid for house here and we've been without a mortgage for about three and a half years so moving back we feel like we have options but we're having a hard time narrowing it down whether it's going to be lake or by a few acres or even build is on the list we can't we can't quite decide um so we're trying to decide now if we should just buy what's on the market when it's time or give it some time and rent in the meantime so we can have um i don't know just experience the process moving to florida we i didn't even see my house before we moved into it it was a little bit more of a quick thing and it worked out and it was great but i kind of want to enjoy the process this time but we're we're going back and forth whether that's worth it or not do we take our time and rent and spend that money that we haven't had to spend each month or go ahead and [Laughter] yeah but anyway uh uh well here's the thing uh how long you been going we've been gone three years okay so you know the market still you know which neighborhood is which you kind of know i don't want to be over there i do want to be over there that kind of we know the county that we want to be in we know we have it narrowed down to certain areas certain lakes certain country areas if you don't find the thing that you want in those areas then it would be rent and patience until you find the thing you want but if you find the thing you want there's no rule that says you have to not get it right right i hear in your voice a very i hear in your voice a very kind way usage of the word we what what's you know this place is where you're from what's the hank what's the hold up um my husband is real decisive and i'm real not yes and i think he'd be okay yeah because i'm that way i can make a decision if i don't like it i'll just make another decision meanwhile sharon's still thinking yep yep that's kind of how we are and i kind of want i i was okay with that on the way here because i was excited to come and all i wanted was a pool in florida well you're going to buy as you move it needs to go at a slow enough pace that you process it you not him because we already know he can process it but that you process it in a way that it involves enjoyment pleasure this is a time of your life you've earned the right to pay cash for property because you're moving from a paid for property you know the area this should be a pleasurable by and large moving never is completely but i mean it's like a root canal but a pleasurable a pleasurable process for you if you feel rushed jammed pushed hustled frustrated chill just rent yeah but if you found the right thing and you had the appropriate number of hours or days to emotionally process it while you were making an offer then there's no limitation right and we we're still holding out hope that there's going to be that place that we both get excited about whether it's lake or land well guys this is it my guess is you're gonna rent and it's gonna take a while because you're on a bit of a treasure hunt a little bit yeah so then my question is um what i mean in that kind of a situation most places like to have a year lease and how much would we then i mean we could spend whatever we want i guess on rent but we don't want to waste our money so then how do you determine how much rent you are spending money to buy patients right so how much is how much is it worth to you that's what the question you got to ask you maybe you want to negotiate with the landlord up front that says hey if we find another place and we can find you a replacement tenant you'll agree to release us okay something like that as a landlord i i happily will release any tenant early from a lease if i have a replacement okay because i often can increase the rent when they leave so i love replacements okay yeah and i haven't looked into specific rentals so maybe i need to explore that a little bit more that's not going to happen with a corporate rental like the apartment complex that's managed out of atlanta or some such crap right but mom and pop like me that's got a house over here with a rent sign from walmart in the front yard they'll do all kinds of deals with them as long as it makes sense for them right so i guess we just need to decide what size of a house because it's going to go anywhere from a four bedroom for eighteen hundred a month to a two bedroom which would be cramped with our two kids it's closer to twelve hundred the money stop the whining about the money you've got the money you're trying to create a process here that you i mean you're millionaires okay i can feel it i know the numbers i know i know the vibe on this so you're there so just enjoy you're gonna blow 15 20 000 bucks for patience to get the right property and that's what you're going to spend on rent for a year while you just sit there and enjoy the process of finding the right property getting the land bought you may even extend the release a little bit while you build the house that's right so just just do it at a pace there's no you know one of the things money gives you is margin it gives you wiggle room and you've got the money to have wiggle room without forcing yourself anyway you know and but when you're broke it's always you know you're just pushed in the corner and uh god i hate that feeling because right about the time i do that's when i do something stupid every time i do something stupid when that happens that's right yeah i have that pressure that i'm jammed up i mean i can't tell you how many times somebody said well the car broke down so i bought a new car you know it's like what then you just fix your freaking car you know but it broke down they just break down all the time you know it's that it's that same thing that's going on is that but they're you know the the hassle of fixing a 500 thing on a car when you're broke is a big freaking deal well in our house we're not broke and just a couple days ago my wife said hey we got to fix a seat belt we could still have a child seat back there we got to fix a seat belt and the first words out of my mouth were is it just time for us to get a new car no one's been there a while and she said i mean while you're on the show that'd be nice and so i started thinking through and talking i got to be on the show with dave i can't well i mean it's just it's just what you said it's like or yeah 300 bucks solves the seat belt problem and i mean it's just how quick it was well clearly we need to throw this thing in the lake and start her question is a really good question it is but that doesn't sound like a money issue to me no it's a process it is a heart issue it's a process issue it's he makes decisions real fast and he's jammed her up before hmm forced her in i know this because i've done it to my wife for 38 years and if this is going to be the forever house which doesn't exist but this is going to be it there's no forever house i want to do slow go slow and make my dream house until your freaking dream changes okay so shut up you don't there's no such thing it's a house let's go buy it this is the ramsey shop cliff and i joined christian healthcare ministries because we really liked the concept of christians sharing each other's burdens and we really experienced that firsthand when cliff was diagnosed with heart disease it was just such a relief to know that financial burden was going to be taken care of chm is the original and longest serving health cost sharing ministry get started today and check us out at chministries.org backslash [Music] budget [Applause] getting a cup of coffee before the show and i ran into one of our new team members who asked him how he's doing he said well better today but over the weekend his new house that he was trying to buy here got sideways because this market is so white hot that he got leap frogged and somebody pushed him out of a deal and so you had to start again you know if you've been paying attention the real estate market this year you've known the competition for a property is high there's low inventory right now and prices are going up in a lot of markets really fast it's hard to find a property when inventory is low it means there's more buyers buying than sellers selling and that turns the pressure up buyers want to snag the right house and sometimes uh when you're doing that if you're not careful you get stupid because you go how it's like a beagle chasing a rabbit you know i gotta go i gotta get hey and you like keep upping the offer to the point that you're in the stupid zone to win in this market you really need a pro walking with you going nick calm down calm down our agents in our elp program our endorsed local provider program have years of industry success in any market and they can walk you through and help you navigate the weirdness of this post-covered market text the word house to connect with an endorsed local provider text the word house to three three seven eight nine that's thirty three seven eighty nine stephen's with us stephen is in columbus ohio hi stephen how are you hi dave how are you sir better than i deserve that's for sure how can i help you had to hear that um got a question for you have a young entrepreneur daughter we actually just recently put in a new commercial kitchen basically in our house she started up a bakery doing ice sugar cookies and it's just kind of taken off kind of blowing up actually um and it was curious what to do with um kind of setting her up for the future what what your recommendation is for a 10 year old to do with her money besides so up in the stages and count so how much has she made with her sugar cookies um it's kind of you know it goes month to month depending on holidays you know it started yeah i mean just roughly i mean um i'm going to say roughly she's right at a month last month was like 5 50 this month pushing the thousand bucks oh that's awesome wow that's great man okay well here's what i'm gonna do when i get done i'm gonna put you on hold kelly's gonna pick up i'm gonna send you a copy of anthony o'neil's teen entrepreneur toolbox which is a toolbox that helps parents work with their teenagers on setting up and running a small business appropriately here's the main thing i want parents to remember about money and about entrepreneurship when you're 10 12 14 even 16 years old the investing in some big investment that's going to be worth 8 bazillion dollars when you're 65 years old is some fun math to run out and it's not a bad teaching tool but then but 99 of what your 10 year old needs to take away from this experience is the entrepreneurial skills and confidence it's not the money the money and the scope of her life is irrelevant because you have a young rock star on your hands and so you know like when rachel was growing up rachel cruz you know sharon i kept looking at each other going we have to point this one at something because it's going to go off you know and that's what you're doing here right you your god you know your your children in the bible says are an arrow in your quiver and so what you want is you want them to fly straight when you release the bow and that's what this is all about it's not about a thousand dollars a month because it's not fifteen thousand dollars a month it's a thousand dollars okay and in the scope of this kid's life she's gonna make a hundred thousand dollars a month if you keep teaching her these skills and so i think what you need to do is make sure you lean in on the lessons and then i always take money with adults and children and i divide it into three categories we enjoy some called spending we give some called generosity and we save some and you always all of us including 10 year olds need to be building those three muscles at all times the problem is often with children we only teach them one or two of the muscles and it's not it's not optional either it's freaking mandatory like brushing your teeth or taking your test and getting a grade and going to bed when i tell you to because i'm an old school papa dave so uh you know that kind of stuff so this is you're going to save some and here's why i'm going to show you why you're going to give some and here's why i'm going to show you why we're going to talk about it and you're going to enjoy some because sometimes you have a kid that's a little tightwad doesn't want to give doesn't want to give or doesn't want to enjoy sometimes you have a little spender and they want to spend it all but you and so they got a natural bent but also help them develop those other skills and these entrepreneurial skills and that's what i want to concentrate on here and so under the heading of savings if you want to sit down and continue a deeper education with the smartvestor pro you can open up a little mutual fund if you want to and put some of the money in there that's okay but the the moral of the story is is this kid is the magic sauce not the money right and dave tell me what you think about this while he was talking i was thinking about myself as a parent of a 10 year old and my 10 year old gets really zoned in on something for sometimes months at a time and it takes a couple of months and then suddenly i start reading about it i get on board and then i think all right i'll learn about dinosaurs and then right when i start thinking about it he's off to the next thing it can be really easy for the parents as you were talking about to lose the importance of the lessons here and suddenly it becomes about keeping this business running right and not forgetting hey she's 10. yeah right yeah absolutely two months it might be soccer that she's this passionate about shut it down shut it down it's sugar cookies don't make your 10 year old have an roi on a professional kitchen you may not need to see this is what happens that's why i asked what real money was he said she's making a lot of money and that is a lot of money for 10. but i've also had the call here where you've got the child star that's right you know and they you know they made a hundred thousand did a commercial and made a hundred thousand bucks right freaking diaper commercial the three-year-old got a hundred grand you know what that's happened i've talked to those people and if you're not careful then the parents get all invested and you're that's how their their childhood gets stolen because they become a product they become a professional right and they become about their achievement and how much money you're going to make consensus and that's why we all gripe about parents who overdo sports or gripe about parents who overdo pageants right or gripe about parents that overdo dot dot dot because they're trying to live some kind of very vicarious crap right through their kiddo and he's not doing that there's no sign of that in his call at all none whatsoever but that's the warning is encourage nourish the positive things guide them give them some boundaries some guard rails so that this can be a healthy thing not a toxic thing but you can hold it really loosely yeah hold it loose yeah they don't need to be up two o'clock in the morning making cookies you know i mean it's don't send your 10 year old salt mines and he wasn't doing that yeah and most people don't but sometimes people go well the kid needs to go where the kid's going to go no no they're a kid they're 10. you need to you need to go no you're going to bed you're going to bed it's a sugar cookie shut the crap up go to bed you know i mean this is it you know and so you got to draw the line there and and back it in because uh you know adults because if you don't then you've got a 30 year old with an expanded version of that and that's then they end up in your on your show yes calling in going i'm crazy so they've lost their ever-loving mind and that's not how they call your show but it's i mean it's this is the actual diagnosis sort of well but yeah i mean it's so it's so easy to take what your kid's passionate about and it becomes your passion and suddenly you're driving them towards an outcome instead of letting be a kid yeah and then you get you know you can name all these stars that were stars too young right the teenaged or that didn't have parents who had good boundaries well parents were just crazier than loon and then the kid just made a blew up made a bunch of money and as a country star a pop star or whatever 14 years old and then all you've got is expanded dysfunction right later on because they never had the ability to emotionally relationally develop and and have good solid boundaries and process now again he's not got any of that there was no smell of that sounds like he's like he loves his daughter yeah you sound like he's proud he's very proud of her and he should be she's a cool kid that's a cool kid i mean that's neat but the moral there is don't overthink it yeah yeah and don't make it in a savings account and local but i mean you don't have to when you when you look down and you go five i mean a ten-year-old thousand dollars it's incredible you go and it's easy to go i got to be responsible with this you know it's like yeah be responsible with the gift the kid has that's the most kid's heart that's the most important thing love it because that kid's gonna be a big deal that's a big deal kid right there should be working here someday i love it running a whole area this is the ramsay show [Music] [Music] [Music] in the lobby of ramsay solutions on the debt-free stage andrew and rachel are with us which can only mean one thing they're debt-free congratulations thank you thank you steve where do you guys live clarksville clarksville yeah awesome thank you absolutely welcome to nashville and how much debt have you two paid off two hundred thirteen fifty two thousand dollars yes impressive how long did this take you two years 24 months exactly that's really impressive what's your range of income during this time uh just about 125 000 combined okay we all do for a living we own a small business up in clarksville doing what auto repair oh good okay it's a good business really good business and uh so 213 thousand dollars making 125. you sold something we sold everything all right tell us the story what kind of debt was this and what happened uh we started out we had car payments for both of us we had an rv um wait a minute a car guy has a bunch of car payments no we did of course and an rv we did we did what did those three things total oh the truck was 50 the rv was 40. the other car was 30. yeah okay that's what i'm thinking all right so we we did keep one of the cars we paid it off yeah um we do still have it okay i sold the truck sold the rv all right that's 90 grand of the 213. yes yeah all right that makes now these numbers are starting to get where you get because i didn't see any there's any food in there right some beans yeah but you're still on rice and beans but yeah 90 off that 213 is helping me get there okay all right cool so what happened what caused all this because you went bananas we did um we liked stuff yep um that was that was our problem we um nobody else does um we just wanted all the things our our um our hearts desires were just in the wrong place we thought as long as we could make the payment we're all right and what broke your back what made you change uh things with the business at the end of 18 got a little tight um we always made sure our people were paid well we were the first to always take the you know pay cut and um we just ran out of month we still had the money you know money before the month was still there too much left at the end of the month yeah so the beginning of uh of 19 we just hit rock bottom and um our church right at the same time was offering fpu and at that point we were within 30 days of losing our home wow every time we heard a truck outside we were making sure it wasn't the repo man whoa you were really bad yeah yeah we yeah we got a bad total stress yeah we we had uh we were probably a couple days from receiving eviction notices we were we were there man we just uh it was it was bottom wow so went through fpu um immediately started giving joyfully and sacrificially to our church and um you know started our budget and we sold a lot of stuff you went through the house sold furniture sold musical instruments that from high school and college and yeah just got rid of everything yeah how long did it take you to get current that's that's the crazy story so um our church actually loaned us a month's payment to get out of a bad spot within two months we were able to pay that back and catch up um we sold the truck um we after we sold the truck there was an overpayment so we got a big check in the mail um we got a payment back from i think there was some gap insurance we got several checks that just we called it mailbox money it just it just showed up unexpectedly god sent us money in our mailbox and couldn't find any money when you were being stupid when you got smart god started spending it yeah and uh the money just showed up and within two months we were completely current on our mortgage wow um it took us a little longer to sell the rv um we had to put it on consignment at a lot and that took that took a couple months um but yeah the truck the truck went right away so how long in that process before because i mean when you hit that you got that kind of stuff bearing down on you i've been there yeah uh how long y'all been married almost 10 years 10 years this year and when you get that you got that bearing down on you you're about to kill each other oh yeah kill everything in sight yeah uh the stress level is out the you know out your ears it's crazy and how long before you start getting a sense of peace a sense of control from the time you started the class i started feeling it pretty quickly but it i mean it it takes a while for it to be a reality yeah it was it was you could see it yeah it was probably two or three months before we kind of started feeling like okay there's we we got this you know we yeah uh probably by month three we were seeing the like april may of of 19. yeah it was so how did that impact your business you said your business was struggling and then all of a sudden it feels like it turned around oh yeah our business skyrocketed um we we had become somewhat disengaged with our business our business was was somewhat running on its own without our input at times and uh i mean we we re-engaged we we got some some great team members i mean we had a lot of great team members already but um they they got behind us they saw what we were doing um they rallied around us and uh and we've um we've had a record year 20 2020 was a record year for us so gonna figure out yeah through all this we we never slowed down yeah so what'd this do with your marriage where was it and where is it you want to take that one be very careful about your answer you have to tell the truth you're on the radio we have a lie detector yeah no we we had some rough times i mean it was definitely a roller coaster and there were some there were some pretty far down uh dives in that process but um i i can't even begin to tell you how much stress is off of us um you can't believe it until you've been there yeah are you missing those high school uh instruments no because little girl locally who's in high school who's going to grow with them the way i did all that junk we have shoved in corners of our house we don't need anyway man we actually ended up selling our house through this process oh wow yeah so uh we came here and we were actually sitting right here on this couch and a guy called in and said should i sell my house to uh to pay off some debt and your answer to him was well do you like the house or not and uh he liked his house so you told him to keep his house but we looked at ourselves and we're like we hate our house it wasn't a long term long-term house you know we had planned on living in this house for three or four years and that was ten years ago yeah and um we actually worked out a deal with a real estate agent to get some uh kind of some some cleaning up renovation renovations paint carpet you know stuff like that um we ended up selling the house for 50 000 more than we thought we were going to get for it and uh so we and that enters into this numbers too then yes yes wow so we took that uh we took that equity in so you guys you weren't you weren't biting around the edges on this you walked you you ate your way right through the middle yes absolutely you did everything and you did it all big yeah go big or go home absolutely wow so impressive yeah thank you was it worth it oh absolutely yes so much why didn't i do it five years before right yes yeah yeah that's and now we're lined up to teach an fpu class coordinator so hey are the guys in your shop watching you walk around a little bit taller a little bit with a little bit lighter smile yeah for sure yeah cause we talk about changing our family trees but we we can't ever forget that we're also changing the the interactions of the people that we were with day in and day out yeah absolutely rubbing elbows in the shop yeah for sure yeah wow good for you guys so proud of you you're just so cool i'm so glad you're teaching fpu because ain't anything anybody's going to bring up no whining will be allowed you've done everything you'll be like shut up right do this don't be why you cut up your stupid cards yeah you will be like me man i had no mercy on people when they were in that class yeah wow i'm so proud of you guys thank you well done well done all right count it down 213 000 paid off in two years making 125 count it down let's hear a debt free screen all right three two one we're debt free i love it and just watching their body language life is good this is the ramsey show [Music] [Music] our question today comes from blinds.com find out for yourself why blinds.com is the number one online retailer of custom window coverings you get free samples free shipping and with the new promos they run every month you'll save even more always use the magic word the promo code ramsey to get the best possible deal all right today's question comes from steve in kansas steve asks my wife and i discuss our budget every two weeks but it never goes where it's supposed to go she always finds something to spend money on but when i want to buy something she shuts me down i also cashed out a mutual fund and it had seventy thousand dollars in it to pay an inheritance from an inheritance to pay down our mortgage but she's dragging her feet on paying it off more of a statement than a question yeah you know whenever i hear this dave i this is never about a budget for me i always think this is about um relational power right there's some either she's self-soothing with this or he's writing this in trying to you know feeling like the hero a little bit but this is the only play she's got in this marriage only place she can be heard or i guess somebody can just be a jerk but whenever somebody says we talk about this stuff a lot man you can talk circles around things unless but if you're not talking towards something it's a waste of a conversation right yeah the the illusion about communication is is that it has actually happened right we said a lot of words and so we parted ways what i what i run into with this is a kind of nerd or free spirit thing i'll give you a guess i'm going to read some mail here read between the lines i'm going to guess and say steve is the nerd he is a uh uh and she is the free spirit and to steve when you write it down and we all agree to it in his mind it was chiseled in stone by god and he brought it back from mount sinai right you know and he's like god says this it's in stone this is not only a contract you will be struck by lightning if you violate the contract right a wee bit parasitical right a wee bit uptight right her on the other hand she's still functioning at a freaking eight-year-old level and just did he bops into life and did he bops out and looks at her husband's thing says yeah babe let's do it and then wanders off and doesn't anymore make a contract then fly to the moon and she little does she know she just signed up with a contract with big boy contract but a budget is a is a is it directional right it should be a contract right but it should not be an uptight contract and what's the problem steve is is she does not view it the way you view it she doesn't think she's breaking her word and you think that she's a liar and it'd be cut right and it becomes about who's got the strength here yeah in his language i also cashed out this mutual fund now i'm i'm i'm taking what uh she's gonna take that power i'm gonna take this one and now man you are no the only thing that happens here is what what you've gotta do is you have to raise the level of the language to communicate and go okay honey when i say this it means to me we are pinky swear spit shake we are you know cutting our little hand here putting a little blood on there we're signing an oath in blood that this is by god what we're going to do and i want to ask her what is it and if you sign this if you say yes i agree to this that's to me what you are doing so when you don't do these things honey it makes me feel like you are lying and she needs to go whoa i had no idea i was signing up for that trip and i then i want to ask her why are you unwilling to unable to lock arms with this guy and stick to what you said you were going to do because she's not even in the same ballpark she just drove off and did whatever the crap she wanted to do but look at him they're both violating but what amounts to is they didn't have the same language to say this is a contract and they don't have the same destinations where they're headed yeah but well they both looked at it and they all said yeah let's go to florida but he meant he meant that in the morning and she met next year or she meant it'll work out yeah we'll get there eventually we'll get there and this is no where is the car packed why aren't you in the car his response well then i want to buy something yeah well that's just hit back that's just childish back yeah yeah and um there's just an overall machine you know in other words if i'm this this inheritance thing is an emotional thing to him and it should be that's a valid thing if he says i'm gonna take my mama's money and put it on the mortgage that's a big deal to me so when i put this money in the account and by the way steve why didn't you just write the freaking check why are you waiting on her to do it uh but anyway aside from that uh it's straight into the mortgage right you know it's like but she's dragging her feet why is she dragging her feet just write the dadgum check you said you were gonna do it or did we have a conversation about hey we got this inheritance let's talk through what we're gonna do with it we all agreed yeah right did we have that conversation did steve with his math and his uh excel sheets create his old universe here i i i got to tell you the reason i know this stuff is exactly the mistakes i made it's because i'm the spreadsheet guy i'm the decisive guy and to me by god when you say you're gonna do something that's just like you said you're gonna do it so why aren't you doing it i can't stand it we're the reverse in my house and sharon's like well i didn't really mean i was like gonna you know sell one of the kids i mean and now you got one of the kids up for sale you know it's like well seventy thousand like let's we're gonna play with five and so sixty five thousand is great right well sort of a minute but i didn't exactly mean it you know and so we've had to go oh look okay we are completely agreeing on this date this amount this is the thing and you get a vote and i get a vote do you feel heard yes i feel heard then by god you're gonna stick to your word okay i mean we've had to have these type of real clear words in our com visceral words in our communication early on to get where we're locked in because now she i mean to me once you say it's not if for nerds if it's on the spreadsheet it's law it's just that's law and for free spirits like me it's it's an approximation yeah i always get there yeah that's a good general concept i like that you have a spreadsheet we're all going to be 50 someday right yeah we're going to get there yeah it's a it's what they're saying and she didn't sign it actually she signed it in his mind but she didn't know it that's my point that's what i'm saying and i think that's a great exercise for every married couple to say we've got to be in agreement we've got to be in unity and you're going to use different languages rachel's book know yourself know your money he's got tons of stuff in there about how your spouse is viewing this conversation about money and how you're viewing the conversation about money and it comes from all these different angles know yourself know your money and it's just it's so powerful yeah and i as the free spirit there's this i always come back to this thing about control yeah this power this what do you mean i can't i'm in this house and i'm in and that's me being immature that's what it comes down to no i mean because the flow of money is about control but what you have to fight to do in this communication is uh relinquish half of the control like sharon and i at this moment are in this dispute over a large purchase and we talked about it before i walked out of the house this morning okay because we have a rule when when we're not both on the page we don't do it until we both get there we don't do it whether it's a large gift on you know philanthropy we're giving whether it's a major move down here at the office with a bunch of money or something like that or whether it's a purchase and in this case it's a purchase of something we're looking at that we're but but she's like well i think we just you got the money what's wrong with you you just need to do this and i'm like nope not ready this is not right it doesn't feel right it's just not the same one so you both have a veto card you both can play the the trump card if you've ever played you know hand of cards where you can play a trump card i'm not talking about donald i'm talking about the joker game okay i'm not talking about the joker i'm talking about a trump card so but the the you know you've got you both have a vote that can call it and so what we do is it forces us to do nothing until we can find the thing that we both can agree to where you align and that means you have patience intentionality and a tone we value grace we value the unity more than we value the thing how long did that take to get to uh 10 years a minute 10 years yeah after going broke you know first thing we did is try to kill each other when we're going broke right like we're talking about with a couple on that debt-free screen but you know that this is vital stuff right here y'all because all the data points that we have in our millionaire study that ramsay did gives you very clear guidelines that very few people become millionaires uh without spousal participation and spousal unity you got to be alive and spout in spite of these communication breakdowns you just don't do it you do it because you force these conversations at a real healthy level that's why dr john deloney is here because he can talk about this stuff intelligently this is the ramsey show [Music] 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] 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 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 dr john deloney ramsey personality and host of the dr john deloney show is my co-host today as we talk about your life and that is what he specializes in and your money and of course we'll both talk to you about that open phones here as we mix those two things together and create this soup called common sense the phone number is triple eight eight two five five two two five that's triple eight eight two five five two two five clint starts off this hour in chattanooga hey clint how are you i'm doing well how are you dave better than i deserve for sure how can i help uh my wife and i are 37 years old um we've been living your plan uh since we graduated college and got to baby step 7 in 2015 so we haven't had payments in six years at this point um wow yeah so you just dropped that so yeah so you're like 32 years old you had a paid for house and you've been sitting there five years since then so are you a millionaire already uh yes we are at 37 years old because you did our plan since college touchdown i'm done john you just take the show from here i'm out i just felt the collective uh eyes of america roll like oh gosh this guy this guy that's awesome clint you're incredible brother well thank you very much it's uh it's been a great journey for sure how can we help today so um we have a great problem of having a lot of money in retirement accounts already i hate it um so we've got about 515 000 in retirement um and my question is should we keep adding into that retirement or should i redirect that return leave what's in there there and redirect future contributions into something that's not a retirement account that's locked down until 59 and a half what's your household income last year we made 225 yeah i would probably not i probably would because of your young age here's your trade-off okay your trade-off is like your concern on one side of the pendulum is everything stuck in return until 59 i can't mess with it and i can't do something else with it i want to like buy a lake house or something right and which is an important purchase and uh uh so the uh that that's the trade-off the other side of the pendulum is every dollar we do something else with the government's gonna get more of it right and so if you take for instance i'll tell you what i do i max out everything and then any other savings i do for other things i just throw it in an index fund like an s p 500 index fund uh it doesn't have any taxes on it until you sell it because most because it's a low turnover ratio uh and if you keep it if you leave the money in there at least a year what taxes you have on the growth will be at 15 at capital gains anyway in your case my case i make more than that so i get charged more for capital gains because i'm an evil rich person you must be punished in america but um the uh um so yeah you get taxed lower and you've got access to it but it's still not as tax friendly as retirement is right so if you want to divert a portion of this over to that that's fine the trade-off is not you're going to be broke at retirement the trade-off is the government's going to get more of your money doing that in order to have access to it before 59 and a half okay great and i think that's a reasonable trade-off for some of your investments at this stage so here's a rule of thumb if that money's invested and making around 10 if it's in good mutual funds the way we teach it should be doing that on average it's gonna if you don't add anything else to it it's going to double about every seven years so at 44 it's going to be a million at 51 it's going to be 2 million at 58 it's going to be 4 million if you add nothing to it right and all i was doing is doubling it each time you follow me and so when you and so if you have 4 million in your protected accounts and that's all you have in there that's fine uh if you as long as you've got some other wealth built on the side and we're not talking about consuming the money but you're not consuming anything because you're doing you're consuming things but you're doing it intentionally and you're not asking me about that you're asking me about investing that's correct yeah so oh man you're so cool that's awesome so proud of you really nice yeah so i probably would not shut it down completely but i would redirect some of to where you've got some money over i'd like for you to have if you got four or five six million seven million in retirement i'd like for you to have three or four million at 58 in non-retirement okay great and that you could do other stuff with in the meantime again it could be a purchase it could be just access to the money without any penalties it could you know because you have got you've gotten such a head start god you're so amazing so when you're when you're thinking about buying a big piece of real estate yeah do you use that index fund that's my savings savings account that's my savings account okay that's exactly what i'm doing and so if um you know like we're building these buildings here and so what i do is i take all my income right now almost all of it i live on a little bit of it but i throw almost all of it in an index fund and then when i have to write these thinking checks for this concrete we're putting up next door and getting ready to start an event center across the street this millions and millions of dollars they just come out of that account gotcha and it's just it's just parked there sometimes i don't make a lot on it because sometimes the market's up or down while i ride it but i can afford that ride in that situation because there's so many freaking zeros involved is the is the volatility worth just putting it in the i guess you can't put in a savings account because it's not insured yeah you're going well it's not insured but i'm not worried about the insurance it's just it might it might lose one percent it might make ten percent okay but if you put in the other you're gonna make one percent and i'm just not gonna be thrilled okay you know so i've got some sitting in in money markets and that kind of stuff for that kind of thing but i'm just generally this is an investment account i'm throwing it in there i try to leave it alone a year so i can get the lower tax rate because even i get a capital gains tax break on that but but this is baby step seven stuff folks that's what you're doing at baby step seven and this is what you're doing if you're 37 and you're already a millionaire and these are good problems to figure out yeah this is muslims this is um when i started this show i dreamed i would get that call someday that 20 years after doing this that guy when he was 22 started doing this stuff he's 37 now and that's where he is that's he's why we're here that's who i want to be with man that's awesome jew i love it love it love it love it love it love it love it very cool stuff yeah so yeah the thing you don't want to you guys listening you don't want to use that discussion that we're having there as anything except something to point out that i want to be someday it's not a discussion to say that's a reason to not do the baby steps well i've even wondered if i'm saving to buy a rental property if i'm saving to buy like some acreage or something that would be after your house was paid off right so you're in baby step seven right yeah where do i hold that and so you're just going to dump it in next year you can you could hold it into that index fund but the risk you're taking is the market could go down um which means you would just if you found a piece of ground you might not want to buy it because your mar your money's worth less right then you may want to wait and come up and then you might miss a piece of ground so or you might go well it's just the cost of doing business and i lost a little bit you're never going to lose the whole account if you do that means the entire economy collapsed and that's just not going to happen i'm not i'm not worried about that uh does it dive sometimes and take your breath away yeah and does it shoot up sometimes and take your breath away yeah that's part of the part of the roller coaster ride that's why people get on them this is the ramsay show [Music] [Applause] 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] [Music] [Applause] [Music] thank you for joining us america dr john deloney ramsey personality is my co-host today john there is a disturbing thing happening with teenagers and with covid that you've been talking about on your show and james our producer sent us a an article on the loneliness issue and teen mental health with this that is it's scary yeah if you if you could construct a way to torture teenagers it would be to isolate them put them in a house with their family for a year or more and force them to connect via social media which are outlets that we know exacerbate anxiety depression these things make people feel less than make people just accelerate this disconnection man and it's it's an absolute mess dave it's a mess so the kids not being back in the classroom is just is causing uh uh well i mean we're seeing suicides increase we're seeing loneliness increase we're seeing just because the development human development requires interaction with other humans and it's not and social media is not interaction no and especially especially with kids especially with with teenagers in middle school we they are figuring out who they are in relationship with other people and when you take that off it is just like cutting the string on a balloon and it's off right there's just no way to ground when it's just you and a screen and then you just you go through these curated images of what other people are supposedly doing what their lives are supposedly like and it makes you feel less than and more isolated more isolated more isolated well and then people have digital courage and so they become bullies and mean and other stuff here's another interesting thing when you and i were kids and we ran into a real bully or we are one ourselves and we somebody mouthed off to us that hurt and then we went about our day and with our friends and there's just a natural cycle to that when it's in black and white text it stays you read over and over and you go back to it you go back to it and it re-injures and re-injures that's another thing if you lose lost a grandparent from uh so you've got a generation that wasn't connected enough with humans as it was but on top of that you just took them completely and stuck them in a house that's right with covid and then they're not going back to the classroom and so the teachers unions are screwing these kids man there's i just can't um i can't find the data the science that supports keeping these kids by themselves um even our kid has been back um in a regular public school they got to wear masks into these things but but man he gets to interact with their kids and he gets to be around other kids he's got gets to run around and these they're they're making up new game but there's with other people um and i'm i'm hearing stories about um reading stories about teachers unions trying to say yeah we'll let them back but why we're going to replace the air conditioning complexes or we've got to fill in the blank and using these moments to try to get other gains for the teachers man my wife's a teacher i'm from teachers i've been a teacher i'm all about teachers but it's all about these kids it is about these kids at the end of the day that's why we are teachers that's why i was a teacher my wife's teacher because we're about these kids and these kids are dying on the vine dave it's really it's it every mental health professional i know is predicting a just a collapse of these kids when they go back um because they've just been separate for so long and it's just a mess you know one of the things we've talked about and the data is there it's been there for years i remember reading it a long time ago and then you reminded me of it the other day that um teens need uh physical proximity to figure out who they are right and they even the the thing it's if you've never heard this before it's going to sound strange to you but your even their heartbeats start to they they regulate all of them yeah their eyes they hit each other you know they they not only pick up the same words and vernacular and those kinds of things but literally the physiology of their bodies is into it has to be with other tend to connect yes and when you don't have that it's not developing properly it's that's exactly right and you you don't get that that teacher that just puts that hand on the shoulder that just winks at the kid in the hallway we used to call it accidental community where you as a teacher you just watch for that one kid who's got his heads down who's not getting it at home who's not getting it who's getting beat up by his older brother who's struggling on the bus whatever the thing is and it's those little touch points that a teacher can provide that that school counselor that school principal that coach can probably not the academics no it's the relational quality yes yeah yeah you can get socialization we can transfer information that's that's the easy part it's talking to the teacher that's that's showing you man you should see my son coming home from history he is learning the narrative these stories and they've come alive and he's asking questions at home that i never dreamed a 10 year old that's because he's got a relationship with somebody that he trusts who's giving him this information right and and he could read a book it would go in one ear and not the other but this teacher is helping to come alive in him right and so all it to say is man where you can find ways to let your kids be around other kids find ways to connect with your kids find ways to get them out with other children this is far more dangerous than the virus i think it is that's a statement i made yeah i i can't see a way that it's not dave um i i have not seen been compelled by the data on kids yeah i mean the first time i heard you um talk was uh uh you you talked about screens before covid before coving i mean i don't know three four years ago i heard you do a talk and you were talking about the damage uh not necessarily from the bullying the bullying's part of it but not necessarily from that but the damage that this lack of physical proximity to create socialization and proper development in a child seven to eighteen seven to twenty seven years old think of it this way we you know depending on what stats you read is seventy to ninety percent of communication is non-verbal right and so when you export all of your interaction with somebody to zeros and ones to text messages you're you're communicating 20 30 you're missing shoulder movement and body posture and eye crinkles and this syncing up that we do together right so yeah i have not seen any data that said kids don't need to be back in schools that covets just wiping out kids in fact it's been the opposite it's taken out folks who are older who are um not in good health right who have other things going on now of course there's the outliers we hear about are you seeing the mental health community starting to raise this banner i've they've been doing it for a year all along all along they weren't getting a platform you can't there is no platform and everyone is so busy throwing things up online just so they could see folks right because they knew this crisis was going to emerge and this the other thing think about um if you had someone that you love your grandparent died in a car wreck the last thing you're going to do is go watch anything that has to do with car wrecks until you're until you heal and if your grandparent passed away from covet or you have someone you love pass away from covet every news story every everything's about covent cove cove so these kids are just looping on this all day long all day long all day long and those loops just become that anxiety when you can't take that anxiety more that's when that that weight just takes over you that's when you just sit back and you fade back and we call that depression that's what you just unplug from from the world man and we're just what we're just watching it happen with kid after kid after kid after kid and at some point whether you got to run around and play outside i don't care how you have to do it you got to get your kids in proximity other kids you have to dave even when it comes to church the bible says don't forsake the gathering of the believers figure it out i've heard of churches meeting in people's backyard and whatever you got to do you need to be in proximity figurative human beings right human beings need relationship to function properly got to it is not good that man be alone and uh this is what we're seeing and we're seeing this in careers we're seeing it in businesses uh we're seeing it with this article uh what was this article out of psychology today psychology today on the loneliness and depression and suicide rate of teens yeah it's really tough man um and even this let's say you're in a city in a town where you just can't or you live in a highly compressed city that means you're gonna have to go over the top being engaged with your kid yeah you're gonna have to put your electronics away moms and dads and you're gonna have to plug in you're gonna have to figure out how to kick a soccer ball in your living room you have to do some first 30 days binge watching netflix was okay it's over it's not okay now it's not okay anymore these screens are killing you find ways to engage in your kids dr john dolone ramsey personality i am dave ramsey [Applause] [Music] so [Music] [Applause] [Music] [Music] [Applause] so [Music] dr john dolone ramsey personality is my co-host today on the debt free stage in the ramsey solutions lobby jeremy is with us hey jeremy how are you pretty good dave awesome man good to have you so you're here because you're debt-free how much did you pay off uh i'd rather tell you seventy-two thousand and forty-two dollars wow how long did this take uh 22 months good for you and your range of income during that time uh started about 35 000 and last year i made 49. good what you do for a living uh piano teacher good for you how'd you raise your income that much uh in 2018 i started a job at a preschool as a journal music teacher and i used all of that income to pay down the mortgage i was doing triple mortgage payments i'll show it's your extra job yeah i was working 65 to 70 hours a week i got you okay so you paid off your house yes wow i love it piano teacher way to go it's the only dead i had the only death i've really ever had wow man look at you man and with you say a piano teacher for preschoolers no that was his own job and then the extra job was at a preschool yeah very cool what's the house worth uh zillow says about 204 i bought it for 105. where do you live uh south elgin illinois uh just west of chicago okay wow good for you man congratulations okay so two years ago ding ding you go i'm gonna go crazy and pay off my house fast what happened what caused that uh i was working i was a little bit underemployed before i started the job at the preschool so it was a big boost of income and i decided i'm not going to work 65 to 70 hours for the next 20 years so if i get the house out of the way i can cut my hours down but i didn't want to give up my business of piano lessons so um you may be with a piano teacher and a a preschool teacher you may be one of the top two or three most patient men in america you've got no idea wow yeah you're like a walking xanax i think probably yeah what a gift of humanity you are good for you man that's fabulous okay so how'd you run into us uh i started listening in 2009 a friend of mine turned me onto the show at the time i was 27 making 19 000 a year and so now i'm up to like 45 ish a year so you know yeah but as you're going along two years ago you went i think i can do this dave should i finish off the house it was starting the job that did it because i couldn't possibly at 32 000 or whatever i was making uh before the job the second job i couldn't possibly do much extra yeah so but then you said i think i'm going to throw some math at this ding ding oh yeah yeah yeah i wouldn't say yeah yeah now i'm doing 30 into retirement investing so uh i'll be all set now yeah yeah how old are you uh 38. way to go man single never married no kids if you're gonna put my phone number in the bottom of the screen that would be uh that'd be fine available and debt-free baby step seven you know this should be a t-shirt that's right baby step 7 and available yeah yeah yeah and super patient true enough wow possibly a saint [Laughter] i'm just saying all of you jeremy i'm way to go man all right so when someone asks you you're a teacher you like to teach obviously when someone asks you how do you do this what do you tell them i always thought about tomorrow my tomorrow needs to be better than today um and i was raised by my uh parents and my grandparents instilled always think about the future my grandfather owned a business and that's kind of what planted it you know when i started listening to dave i never had a lot of i didn't have any debt when i started listening i started in baby step four which is like oh where am i i'm in four all right i'm doing pretty good um and i just wanted to not have to work so hard in my job when the phone rings it could be a terrible phone call or a great phone call and i over time the more money i build the more wealth i build the less chance of it being a terrible phone call you know the longer i go i can enjoy my work rather than stress about losing it which covet didn't help yeah i i lost almost all the income in covid so thankfully uh almost all of my customers stuck with me yeah but uh i had four uh streams of income and all of them gone yeah so they're all back now uh no just the piano lessons oh that's and then i had to drive uber eats the last year to make up the difference okay i was doing 30 some hours on that on top of the piano lessons because once you got a goal oh you gotta go i i said when i first started the preschool i did the math on your website the mortgage calculator to see when can i go see dave and it said payoff december 2020. so i'm like coveted like oh come on you know so that's why i cranked up the ubereats i'm like i am not going to let this go yeah and you're still here in early 21st well done yeah i know yeah yeah excellent job dude very good how's it feel great yeah i the future is just uphill from here no payment in the world nope nope totally weird shoveling so much at investments every single uh month it's great how much peace and healing are you seeing as these kids come back and can sit with you at the piano it's great uh me being a one person in their house it's a normal thing for them i'm getting a lot of customers like that that it's everything else is weird but i can be normal well i am weird but you know yeah but you being there yeah yeah that's cool very cool man well done very well done yeah so all the 30 hours and the uber eats was it worth it oh yeah um it was long but at least i knew that it was for a goal i wasn't throwing it out the window it wasn't forever no yeah it's not a way of life yeah i do the math i should be able to fully retire at my current level about 54 if i keep shoveling at investments like this yeah so somebody is driving down the road right now they're making 45 000 a year and they got 70 grand in whatever debt what do you tell them just keep at it you know think about um you know the future don't worry about today as much but be you know plan for tomorrow that's the big one um you don't want to be i know people that are retirement age that have nothing you know and i am determined not to be that yeah yeah well nobody plans to do that that's true uh they do that by not planning so um yeah you don't nobody says i'm going to fail on purpose let's do let's get about the business of failing no we don't do that so well done i just got to tell you i mean just your whole spirit i wish y'all could be in here there's something about you that i can tell you're a great teacher i can tell you love interacting people but you're an encouragement to me today i'm grateful for you man this is such a cool story and it's just life kept throwing you a lemon after lemon after lemon and you were like i'm just gonna drink more lemonade and more lemonade more lemonade a year ago i was a wreck because i thought it was all gone you know oh boy but you know i mean he's got back off the couch he figured it out yeah i had to there's nothing more rewarding more fulfilling than getting out of the house and going to work yeah you know oh boy sitting at home solves a multitude of sins vital hands the devil's workshop well done sir well done all right jeremy we got a copy of rachel cruz's best-selling book new york times bestseller know yourself know your money to say congratulations oh thank you jeremy 72 000 paid off that's his house and everything 30. seven years old oh and he's available 22 months he did this i'm making 35 to 49. count it down let's hear a debt free scream three two one i'm debt-free baby this is how it's done i i've threatened to open up our own version of eharmony for years and i guess i'm gonna have to do it i'm telling you that dave math will hunt right there that'll be good i just it's it's just one story after another dave and i've only been doing this a year every one of these i just think it gives me i drive home people are inspiring a little bit lighter people are inspiring what they can do when they believe they can hope is a powerful drug it is and he's like okay i got knocked off that horse so i'm going to do hebrew each and then i got knocked off that horse and i'm going to and i'm freaking out but i'm going to go i'm just going to leave home and go work and and this is how you do it right here it's exciting every day you got to choose again and choose again and choose ding ding ding little wins what i want accidentally wins the super bowl what a stud man well done sir this is the ramsay show [Music] [Applause] [Music] [Music] so [Music] so [Music] dr john dolone ramsay personality is my co-host today open phones at triple eight eight two five five two two five david's with us in kansas city hi david how are you good how are you dave better than i deserve what's up uh well i wanted to thank you guys for taking my calls and i just talked to you dave hey john you too all right um so i am a registered nurse i've been working for a lot of the code with pandemic i make about 55 to 80 maybe 85 thousand a year depending on how much i work i owe 105 or so on my house i bought it in 2019 is valued at 165. i'm in school right now and when i graduate i'm hoping to make anywhere from between 90 to 140 what will your degree what are you usually advancing your nursing career yeah so i'm going to be a nurse practitioner okay good very good um when will you graduate in december okay good so this year okay yeah uh i have a wife and a kid uh he's two and a half and i have another one to do in april so she just stopped working as a nanny and is a stay-at-home mom now cool the schools in the outskirts of kansas city missouri where i am right now are not great and i'm not too excited about growing up in this area sending my kid to school that at one point wasn't even accredited and justice are not as good as the schools over on the kansas side that are top 15 in the country but the houses in that area that i'd be wanting to buy by keeping up with the joneses house that i'd eventually like to move into are like 400 000 or so so i'm trying to figure out do i no i don't mind sending him to those schools now when he's young but i don't want to send him there when he's he's two and a half he's not in school no but he will be well yeah in four years five ten years yeah i mean in four years you'll have your your nurse practitioner you're gonna be making a lot more money move yeah so my question is should i uh take the next three four years and pay off this house and then save up cash yes to buy uh the house before i move yeah that'd be fine or or just save up enough cash that you can make the move and then pay off that house shortly after that hey david listen david four years ago i was two states and three jobs from where i am right now and if you had told me i was gonna be working on a radio station next to this guy i would have laughed at you okay so yeah carry on man and i i i get when you have this second kid and you start wanting to make plans and make sure everything's gonna be mapped out i can tell you one thing about having kids is you can't map out anything man it just comes you can do your best you can and you gotta plan right but don't don't don't there's no downside to paying off this house and piling up cash right that'll give you options when you're ready to make your move but you don't have to sit and fret about it today you're going to steal joy from right now worrying about something four years from now brother and you may be two states and three jobs from where you are right now exactly okay exactly love the fact that you have a new one on the way be excited about it live in it can't just pile up cash knowing that someday we're going to move yeah and that there's just no downside to that and then you can either pay cash or almost pay cash and then pay that house off later either one will work all of that's going to work out for you just fine if you uh don't understand something don't buy it and that includes real estate right now a lot of real estate questions coming in a lot of real estate discussion out there everybody around the water cooler is talking about real estate you can make a six figure mistake get educated before you buy start by checking out our new 13 step home buying checklist you'll learn about every step in the buying process from saving a down payment to closing day plus you'll get pro tips on how to make smart money decisions text home checklist no spaces home checklist 233 789 it's free home checklist to 33 789. shay's in houston hi shea welcome to the ramsay show hello um can y'all hear me sure what's up okay hey dave so glad to finally meet you um so my question is i'm 30 years old i started your plan in 2017 single mother of two kids by trade i'm an rn and so in 2020 i went to zellington took advantage of the covet thing quit working full-time started travel nursing so my income went from 85 to almost 300 000 last year i grew up i grew up super i grew up super freaking poor like and it's just me and my boys you know left a toxic family environment yada yada so anyways i have been holding money because i was scared that crap you know like if i pay this off my credit score is going to go down so basically i started out with almost 83 000 worth of debt and i have 42 000 left and it's only student loans left to pay well when i paid my car off my credit score went down i kind of i kind of skipped i'm not really skipped but i've got the three to six months obviously saved but i'm so you're doing your point because you're working your plan and well you can't modify my plan and call it my plan it's your plan okay you're sitting in a situation where the doctor tells the patient do these three things the patient goes i'm going to do two of them and they come back two weeks later and that infection is now the size of a softball and you're like what did you do and you're like well i only did two of the three take that dumb medicine really quick though i've got 56 000 in my savings yeah so i was like really quick how much debt have you got forty two thousand dollars left so you're debt free by the time we get off the phone call what's the problem i know but i'm scared i won't be able to get me and my boys a house why no without without you oh you mean without a credit score yeah okay well just make sure all of your accounts are closed and all of them have a zero balance so that you actually do have a credit score not just a low credit score okay because there's only two ways you can get a house a high credit score or no credit score you can't get it with a low credit score okay so you want to make sure you have nothing to do nothing open everything needs to be closed and zero balance no outstanding bad debt so that it does go to zero because if you go to a mortgage company like churchill mortgage and you say i have a zero credit score they can walk through what a process called manual underwriting and get you a house the same exact price as you would have gotten if you had a 746 credit score okay okay they can do that okay but they can't do it with a 576. because that's where i'm at right now because everything's paid off but it's just like my credit cards are just you know they're opening there but they're still open yeah close them yeah and zero balance everything and six months later you'll have a zero score okay i'm gonna do it pull up your credit bureau report pull up your credit bureau report and anything that's on there make sure that account is zeroed and closed by friday hey listen to me listen two things number one at the end of at end of business today you are free you got it i want you to hear that word in your soul i'm not gonna hoard it i'm gonna i'm gonna do it hey here's the second thing yeah you are not what happened to you as a kid you are creating a new legacy for those boys their story is not gonna be your story you're a freaking thousand dollars you're a rock star you are h-town's finest you've done it you turned the corner on them don't get held back by those old stories that are going to continue to try to weasel their way into your heart they're definitely listen if somebody says if somebody says you forgot your raisin yup let's go i don't eat raisins well i'm so glad i freaking met you and i want to send a shout out to my friend mitch because he's the one who told me to call well we're so glad for nick and so glad for you yes 300 000 a year what a stun yeah woman yeah that's a single mom get it i love it this is the ramsey show [Music] hey it's kelly associate producer and phone screener for the ramsay show if you would like to do your debt free scream live on the show make sure you visit daveramsey.com show and register we would love for you to come to nashville and tell your story 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 you jump in we'll talk about your life and your money my co-host today is dr john deloney ramsey personality best-selling author he is host of the dr john delony show where he talks about life and boundaries and relationships and all kinds of issues having to do with mental health so uh hey if you want to join him on that show you can always do that it's a very popular podcast and youtube show and you can call in at any time you want just call at 844-693-3291 or you can email him at ask john ramsey solutions dot com ask john ramsey solutions dot com so if you can't get in today to talk to him that's what you would do the phone number though today is triple eight eight two five five two two five triple eight eight two five five two two five rob is in atlanta georgia hey rob welcome to the ramsay show good afternoon dave dr v how are you guys great man what's up great i am calling to see when and if i need to move from just a standard will to like a living revocable trust when you got 50 million or more all right perfect easy piece yeah here's here's why okay these things are sold it's about a 3 500 to a 5 000 legal bill to build that document and then you have to shift every single thing you own that you want to transfer at your death which is every single thing you own into the name of that trust and you have to conduct all business in that trust and so if you buy a car it's in that trust if you have an investment account it's in that trust if you own a piece of property it's in that trust you get ready to sell it trustee has to sign all the documents it's a pain in the butt to operate out of the thing and here's what happens lawyers sell these things all the time as a way to avoid probate tax and as a way to ensure that your assets are passed the way that they're supposed to be passed and then they don't coach you on moving all your freaking assets which means the trust is sitting there's a shell unfunded doesn't have anything in the name of the trust and so it's of absolutely zero value at that point and 78 of the trusts never get funded people don't move their assets into the name of the trust so the whole thing's dumber than crap now now when you get big money big money like i'm talking about like like this particular building i'm sitting in is in one of those trusts okay now what that does then because this building that i'm sitting in is worth about 140 million dollars okay so that building as it goes up in value i don't want that value in my estate i want that value to pass to the kids with no estate taxes and so placing this puppy and operating it out of a revocable trust makes sense doing that for something that's a million bucks will drive you freaking nuts right you follow me life insurance yes life insurance beneficiaries and all that stuff and 401k stuff life insurance beneficiaries are not taxable as an estate item anyway they're not part of your estate technically you know i'm just saying if if that moves that'll move relatively quickly after my passing oh easy someone's name beneficiary yeah they'll get that money and most the time within a few weeks they'll get your you know and the access if you've named the beneficiary on your 401ks and your iras and that kind of stuff that's going to be very easy to access by the airs as well and um so yeah and if you've got a decent will that's done your t your family ought to have access to the executor to the cash that's in your checking account within a matter of days right so the probate action will move relatively quickly as well assuming you have a freaking will that's done right and the judge doesn't have to blink at it but you just go in you know your lawyer dance before the judge and do two twirls and walk out of there with you the executor's in charge of everything it doesn't drag out for months now the the reason a lot of people do this some states have a big state probate tax where they they tax your estate upon your death like say you had five million bucks okay and there's if there's a three and a half percent tax on that then you know that's going to be a 150 000 tax what okay on your estate and that's a state tax i didn't know that existed yeah it doesn't in tennessee it didn't work but a lot of states like florida's got a big one so uh which bunch of old people there so it makes sense but you know but uh but you know that that's that's what they're after so the federal estate tax doesn't come into play much because it's large the exemptions are large enough but that's why people move stuff into this because you can avoid that estate tax that probate tax and it you know you have instantaneous access to stuff but the problem is the day-to-day operations while you're living are a complete pain in the butt and people forget to move everything into the name of the trust and then operate the name of the trust and so like we're adding some property to this campus and i've got to make sure all that stays in that same trust and the money used to buy it has to come out of this trust right and so it's just she's a freaking barrel fish hooks just to keep the government's hands off the stuff you've already paid taxes you just blew my mind by telling me that some states charge you to die oh well the federal government will too yeah like big okay so i did not know that yeah well yeah i mean the federal state tax exemption right now you just die right yeah this is this is when you get pissed off about taxes and this one you get pissed off about people saying when you work your whole life and you started with nothing and you work your whole life and you've got some money and then people go well you know the rich need to be taxed and so when they die they should be taxed again on money they've already paid taxes on so the federal estate tax exemption right now i'm trying to look at my cheat sheet here because it moves all the time last year was 11 million in some change okay so anything over that's taxed at about 40 percent by the feds so if you got a 20 million dollar 21 million taxes when you got a 21 million net worth and you die you have a 4 million tax bill even if it's all in real estate so if it's a family ranch you got to sell off part of the ranch to pay the tax to pay the feds but what about because you're an evil rich person you already bought that so you already made that money so they already taxed you at 40 percent the first time yeah this is the 80 tax off your money death tax yeah and that's what he's trying to avoid that's the problem here so it's a it's a i did not know you just blew my mind it's a rare moment when i'm speechless and i don't know wow well i it just doesn't come up because it's the rich or easy target right it's you should always make fun of and steal from the rich it's robin hood thing and uh very democratic thing to do so wow i didn't know you got text when texts when you died yeah yeah most people don't because most people don't have a million dollars yeah so there's no federal tax on anything under 11 million so you're okay if that's the case and if you're in a state where there's no probate tax you don't if you don't have any money you don't get taxed on either that's so but if you work your whole life starting from nothing your grandpa started a business he tries to hand it to your dad and then your dad tries to hand it to you and every time it's gone up in value every time somebody dies it gets hit again unless you use one of these trust mechanisms and even then there's some of it's going to be exposed i think after today i'm going to call into my own show to process this i don't even know what i'm saying john's grieving on the air he's grieving the american the american dream wow just found out how close socialism is to your back door it's expensive wow problem is you run out of other people's money this is the ramsay show [Music] so [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] dr john dolone ramsey personality is my co-host today have you ever made a dumb decision with zeros on the end because you didn't do your research yeah me too most people make choices based on feelings or opinions especially when they're buying a house but when it comes to real estate market feelings aren't your friends check your facts find out what you can actually afford research what's trending in home prices talk to a reputable real estate agent in your area like one of our endorsed local providers never buy a house without the facts again if you will text the word house to 33 789 you'll get an agent to help you make smart decisions text house two three three seven eight nine alex was with us in vancouver british columbia hi alex how are you hi i'm well how are you better than i deserve what's up okay i'm calling for me because i have a question about buying a car i want to know if i'm in the right position to buy a car and if so how much i should spend okay um so i'm a fourth year university student i make 40k a year right now but i project that to go to 60 or 70k once i graduate this summer i do have student loans i have about 31 000 in student loans but i actually have the loan in full in an investment account because here in canada we get a small grant portion with the loan so i just spend the grant portion and i put the loan aside so i can pay it back in full after like this like this summer when you graduate well um once you graduate you have a six-month grace period so i'll keep it in the investment until it's like i have to start repaying it nah just pay it off yeah i would pay that sucker off yeah just be done with it side issues okay so what's the question about the car so my parents are gifting me some money they had a 175 000 settlement come to them and i'm wanting to buy a vehicle i have two vehicles right now i have one vehicle that's worth about three thousand and one that's worth about seven thousand and i'm hoping to put that money together add a little bit from um my parents investment on top of it and buy a vehicle my parents are going to give me 15 000 but they said if i buy a vehicle they'll top it up to 20 000 to help me out so it kind of gives me some incentive i guess my question is that the vehicle that i'm driving right now is very reliable and there's nothing wrong with it but i just want a vehicle that does all-wheel drive but i want to make sure i'm doing it the right way especially because i want to be able to pay for my master's degree in about a year from now and i have a long-term goal of buying a house so i just want to know how to go about it the right way given i have all these moving pieces good good good very very well thought out good for you okay in general if you're a hundred percent debt free and you pay cash for the car uh no more than half your annual income and you're not going to be approaching that and that half your annual income this summer is going to be 70 000 so i'd be 35 000 and you're not talking about spending that much on a car i can tell so you're talking about buying like a 15 000 car aren't you that's what i was thinking i almost did buy a 24 000 car but i had your voice in the back of my head saying that that might not be smart yeah well the only thing i'm worried about is i want you have enough cash left over after this car purchase to finish your masters because that's more important than the car yeah so what's it cost to do the masters probably about 20 000 i think okay so let me let me catch up then so you have 10 worth of vehicles your parents are going to give you 20. that's 30. if you spend 15 you're gonna have 15 left and you need 20. yeah and where you gonna get the other five to get your masters well i'll be working and my expenses are about two thousand a month so i'll be able to save i think so you're gonna pay cash for your masters for whatever amount you don't have left in savings if you can pull that off and buy a fifteen thousand dollar car i'm good with it and then whatever that okay you don't buy a 20 000 car yeah okay that's what i was thinking because you're not gonna because that's gonna leave you ten thousand on the hole on your master and that's gonna be tough to pull off with work money mm-hmm yeah yeah well 15 15 000 is very reasonable car you can get a great car for that and your master's is like on a scale of 1 to 10 a 10 and a car is a 2. yeah very important not important i would be tempted to keep my car and get through my master's degree yeah especially if you say you got a reliable car it may not look pretty and it's and all that but mom and dad are gonna give her an extra five she can make the 15 with that extra five and it's no net net loss so if they're doing that to get the car then yeah i would do it but again i'm not going 16 i'm not going 17 i'm not going 20. i think 15 is your cap and that's selling both the other cars you don't get to keep any pets around right they've all got to go so you put five for mom and dad that's the extra five they gave you and the ten from your car cars into a car that's reasonable but here's the thing don't if you go screwing around with it more than that you're going to leave yourself vulnerable and you're going to have an excuse in your mind to get a loan for that masters and i'm not going to go with that neither is john especially on a depreciating asset like a vehicle yeah it's the wrong direction wrong stuff to put money into logan is in chicago hi logan what's up hi dave hi dr dee how are you guys doing today great man what's up so um long story short i graduated in the class of 2020 i decided not to go to college due to cove that i was going to go to music school and well live music isn't exactly around right now um i got a job making about 70 80 000 a year i paid off all of my debt i've got a lovely girlfriend i plan to marry and i'm really kind of struggling with where i go financially from here what did you stumble into an 80 000 job i sell cars at a local dealership wow well done man good for you thank you okay so you're 19 you make 80 grand you don't have any debt and your question is what to do now basically where do i go from here i've you know now i've got very few responsibilities i still live at home i pay rent to live at home but that's a very small portion i've got a decent amount of income coming in am i saving that money for a house do i start working towards like an engagement ring this is these are the kind of questions i'm asking all of the above for goal one is build an emergency fund of three to six months of expenses if you weren't living at home okay if you had an apartment and you needed three to six months of expenses utilities rent food all that kind of stuff you need to talk about moving out probably in the next six months or so and get your own place and then your emergency fund is your first goal probably the ring is your second goal and then begin saving for whatever buying a house or whatever beyond that so with uh i guess in my situation it would it seems more fun to make more financial sense that i have a good situation here at home to bank the money rather than go out and spend the extra 600 plus a month it would be for an apartment well for a little while uh but there's a point you become a man and you move out of your mommy's basement and so the sooner you do that the more likely that's going to become um and so uh if you were marrying my daughter i would want you to have lived on your own and paid your own freaking bills for a little while i don't want you moving from your mommy's basement to be my daughter's husband i can totally understand that okay and that's just that's a matter of development i i i 100 agree with that and i i would it's hard when you want to invest and and get this roi all my money that three to six months man is just to protect you yeah and it's not there to grow it's not there to be shiny it's just there to be your own personal bank for yourself yeah the the money you're going to spend living on your own is an investment in your own growth maturity and growing up and figuring out who you are and it's a good investment and it's an investment in say preserving your relationship it's not giving your dad the middle finger i mean it's just thank you for the you know for the launch pad uh and thank you for not allowing me to have failure to launch and so yeah you know you go do that and then you have your emergency fund in place before you do that and you you know so i'm not saying you've got to move out tomorrow i said six months but in six months you ought to be making 80 grand you ought to pile up what ernie a lot of money you gotta have some money man i mean so where you spend it on you know i mean a ring and an emergency fund and move out and there you go that's what i would do you do whatever you want brother i appreciate you listening this is the ramsey show [Music] so [Music] [Music] dr john deloney ramsey personality is my co-host today [Music] damaris is with us damaris is in new york city hi damaris how are you hi i'm doing well thank you so much for taking my call my pleasure how can we help my husband and i currently have about a hundred and thirteen thousand dollars in debt which just does not include our home we have um approximately 10 000 days and savings for emergencies in case anything happens with the home we have our son and we're about to start foster caring and we're just we've been living simple we've paid off twenty seven thousand dollars in credit cards so those are gone good and we're just yeah we're just trying to decide do we pay use the ten thousand dollars to help pay towards the debt and bring us down to the one thousand emergency fund um being that you know we have a home and we have our our someone in us to enforce a child we're not we're just not really sure if we should save that money um uh or you know use that towards so what is the 113 thousand in debt we have uh about nineteen thousand or so in a car loan and then ninety four thousand student loans between my husband and i and what's your household income uh currently my husband makes 68. i am making unfortunately twelve thousand a year um i used to make a lot more but uh one coveted i lost my job and um working two days a week i used to make fifty two thousand okay when do you think you'll be back for a book um well i'm a bookkeeper so i've been looking for work on the bookkeeping job but most jobs now want a degree and i don't have i didn't get to finish school i don't have my degree yet um in new york city a non-degree bookkeeper can make 52 with experience yeah i'm actually in doable jersey yeah but i mean it's still it's still that same market that's doable um it's not it's not instantaneous but i mean your life did not end because you didn't have the only job in new jersey that someone paid 52 000 for bookkeeping that's just for a non-degree bookkeeper that's not true they're they're there so that's good the good news is you're going to be back if you want to be are you going to go back oh i've been looking since october for in conjunction with bishop i was working actually three jobs at one time just because i want to get a you know take care of family but now i'm making now those two others fell off uh they ended the contract ended yeah um and so i'm still looking um i even started doing doordash just to get money coming in while i'm looking okay i'll tell you what i want you to go to kencoleman.com ken is one of our ramsey personalities that does a show on sirius and on 75 radio stations across america he's not in your market but he's one of our team members here and he teaches people how to land jobs and how how to focus on their career there's tons of free resources there on landing a job and doing a more effective efficient job search than the traditional job search okay he's going to help you a bunch with that i'm going to give you a copy of his book free it's called the proximity principle but it's ken coleman.com now when you land that job it's going to lower your fear substantially you're kind of in a medium-sized storm and i'm not sure you should be on the baby steps right now you might should push pause and you guys just pile up as much cash as you can pile up and then you land that job and then you clean out that account and go down to a thousand dollars and start baby step one baby step two immediately tearing into this debt again okay i'm sorry we were doing really well and then this happened so you know yeah and um that's how we picked up the 27k before so you lost almost half your household income yes yeah is now a great time to be fostering sounds like there's a lot of stress and a lot of heat in that home and man fostering it's such a it's such an honorable thing to do and it is hard it is hard um you know we played about it and uh we were um uh put on hold because of covid and then uh just literally three or four weeks ago they called us saying hey are you so interested and in our hearts we've always wanted to and we just felt like if they're calling us god's timing and we're really happy i mean god knows we have foot on a plate we're very blessed we're happy with what we have and we're just trying to you know be thankful and if we can help another child in this situation that's just kind of where our heart is at yeah i get that in that i hear i hear you yeah that was what yeah i wanna always go back and this is a an over an overdone um analogy but you gotta put your oxygen mask on first before you put your oxygen mask on your kids and you guys got to be healthy your marriage has to be good you got to knock this debt out you've got to figure out what you want to do with employment or stay at home it sounds like a lot of moving pieces and to bring a kid into that intentionally man it's so it's a it's a it's a wonderful thing to do but man it's gonna just add another layer a big layer of weight into that home yeah agreed yeah okay so push pause and pile up cash on the money piece go to kingcoleman.com hold on kelly i'll give you a copy of proximity principle i want you to land that job super fast and then i want you to push play which means you are going down to a thousand dollars and you're going to put everything on the debt and you're going to list your debts smallest to largest and you're going to pay off 113 000 in 36 months and you're going to be 100 debt free three years from today but that's how your process is going to go down but you don't want to half do it and say i'm going to keep the 10 and then i'm going to keep paying on the debt now let's either let's either say it's a storm and we're on pause and we're piling up cash or we're down to a thousand dollars and we're game on whichever it is i think you're in the middle of a storm and you hadn't really calculated that because you lost half your annual income that's what it sounds like emma's with us in austin texas hey emma welcome to the ramsay show hi guys how are you good what's up oh okay i am in a major um i guess you could i want to say uh like catastrophe or just kind of some kind of explosion right now and i really need your help with making a decision um for our family um we are my husband took a job about five and a half hours away um i don't work but um i'm just not sure we're really close i've been putting everything towards our um our debt and we're already paid about why are you not moved with him no he just took it just happened when it's not uh like two weeks ago okay so you own a home we own two homes are they up for sale no one has a renter in it and the other one i'm honestly in the middle of doing foundation work repair okay i literally have a leak underneath my slab right now so you're going to stay at home for a little while until that's you're going to stay away from him for a little while until that gets fixed and then you're going to get on the market well i i don't know because i don't know what's going on our marriage has been shaken a little bit and so i'm very nervous because it feels like all aspects of my life are not solid does that make sense yeah yeah i'm i'm really uh not in a good mental place and so i need clarity um the the reason why our marriage is not in a good place is because i found that he was taking money secretly out of our 401k or his 401k and so i don't have 100 confidence you know or when did you find this out about two months ago what was he doing with the money um honestly it was between um just things that he wanted and guns because he wanted to be have a gun collection toys and i thought how old is he the 40s so is his job that he took five hours away is that a is that a move was that a power play um it could be it definitely and i've been asking you know like we've been you know pension pennies for a while now and so this is more money um closer to his family not necessarily my family did y'all did y'all make this decision together uh i would say 80 him and 20 me i said i'm supporting you i'm i support you but i also still you don't need to do anything until you guys get in the marriage counselor's office asap yeah yeah there's no no you don't need to make any financial moves because you got to decide both of you have to decide what's going to happen here going forward and and so while you're fixing the foundation on the house let's fix the foundation on the marriage it's way harder and way more important yeah this is the ramsey show [Music] [Music] so [Music] so our scripture of the day proverbs 18 15 the heart of the discerning acquires knowledge for the ears of the wise seek it out brian herbert said the capacity to learn is a gift the ability to learn is a skill the willingness to learn is a choice that's a strong quote i like that one maria is with us maria's in california hi maria welcome to the dave ramsey show hi dave thank you for taking my call my honor what's up hi so i am 20 years old i have about 30 000 in savings and i just wanted to get your opinion on what i should do with that money whether that is putting putting it in a roth ira or uh saving it for a down payment in the future um for a house okay what are you working you in college what are you doing yeah i'm in college i'm in my third year um i i'll be graduating next may good um and i'm working part-time with a degree in what and earth science and hopefully i um i'm able to change that to a degree in geology very cool okay so um what are you going to do for a living when you get your degree um well i'm thinking about going into hydrogeology doing work in that which is why i want to target the geology degree right now i'm doing an internship with the water district here in orange county um so i'm getting the experience uh that i'll need in the future uh with this internship um so yeah that's kind of what my goal is right now okay so when you finish all of this and you get the dream job what does it pay i don't know what a hydro geologist gets paid you have to tell me yeah they get paid um i think starting it's about 80 uh 80k a year yeah and then it goes up to 120. and how long is it going to be before you complete this field of study um well if i if i go to earth science um way i think i'm maxed out at like 90 which is why i want to do an extra year so if i do that extra year and go into geology i would be graduating may of 2023 and then i can um i would have kind of a bigger pay range in the future which would um i think from what i've seen it's about 120 280 with the hydrogeology and that will take you i'll take you an extra year yes kind of like doing grad work in a sense but it's not really okay no yeah okay so uh the twenty thousand dollars the best investment that maria can make mathematically is in this investment called maria completing that field of study completing that degree with what you just told me you're going to make as a result is worth the investment of the dollars a lot more than a mutual fund or roth ira will ever pay you so i want every dollar you've got committed to you graduating and you graduating debt-free as soon as possible and pursuing that line of income that you're telling me you can make yes every dollar maria is the best investment maria has possible because you've chosen a field of study that's not left-handed puppetry you actually can do something with it and you figured out what that is and you know you didn't hesitate when i asked you how what the career field looked like and how what you would be paid you already know this is not a pipe dream you've got this studied you you've thought this through you're working in it right now you've planned it you're working the intern you're doing everything right kiddo thank you yeah i also i forgot to mention um for my my expenses for school i get financial aid so i basically everything's covered which is why i didn't know if i don't care about money i don't care i don't care if you've got a hundred if you save up a hundred thousand dollars and you don't even need it go ahead and save it up and make sure that you graduate the day you graduate you get this job we'll start investing and you can use that hundred thousand dollars to buy your first house okay but right now right now that money is laying there to make sure maria graduates and maria graduates debt free john's got a phd in higher education maria so i mean you don't see this kind of thing very often no this is a laser focus but when dave says all your expenses are taken care of here's what that means like most college students will say um tuition room and board dave also means your engine's gonna fall out of your car he means you're gonna someone's gonna throw a rock through your back windshield or you're gonna need some more cl whatever the thing is so get to the finish line owing nobody anything does that make sense okay yeah it does it does make sense that's job one job two is get to the finish line with fifty thousand bucks in the bank okay and some great connections and no one no investments made yet but you're 23 years old at that point making six figures and you're going to be very wealthy because you are a laser focused chick i mean you're amazing thank you so proud of you very well done if we could train america to do that it might be i don't know man let's like think about it bro i mean the number of people getting a degree in beer pong is scary all right helen is with us in fayetteville hey helen what's up hi dave thank you for taking my call sure how can we help so my husband and i are on baby steps four five and six and we would really like to get our house paid off in the next 18 to 24 months but i'm wondering does it make sense for us to back off our retirement investing a little bit to free up some money to throw at the mortgage and just to give you a fuller picture balance on your mortgage 250 000. so how much you're going to back off and how quick what's it going to change the numbers well so uh we currently have about 425 000 in retirement he is 50 i'm 49. i wouldn't want to ask i ask how much you're going to back off and how fast it's going to pay off the mortgage because it's probably not going to do what you think it's going to do well so we're currently only setting aside about 10 percent uh we're maxing out the roth 401k and ross i'm self-employed roth ira and then we've got some cash set aside beyond our um six-month emergency fund and we're kind of we're in that position of right can we start throwing this at the mortgage or do we need to do outside investment outside i'm sorry one more time what'd you tell me your household income is about 400 000. oh you didn't tell me okay all right so if you make 400 000 and you don't want to put in 15 you only want to put in 10 how much cash have you got set aside um let's see above our six months um about fifty thousand dollars okay so see five percent eighty thousand yeah yeah so if you do that that's gonna pay uh it's eighty thousand dollars a year um did i do that right i did do that right yeah that's eighty thousand dollars a year it's five percent um so you're if you do that if you keep putting only putting 10 in and you take that 50 000 and throw it at the 200 mortgage you should be debt-free in 18 months like you said right right and then the rest of your life the rest of your life you just invest like crazy people okay okay yeah i'm in for that okay all right well i just i know that percent is um really where where you like well it's a lock but you understand you're in the top one half of one percent of income earners so that you know you also don't need to spend ten percent of your budget on food because you get really large because you know things kind of start to change with this kind of scale so right you know you know the good news the great news about this is you guys are actually thinking about it you're questioning whether you should break a rule in the system the dave system you know all that and so you're really you know and obviously you're not dumb dumb people don't make 400 grand so nothing i know of um well maybe one example but i just went there in my head but anyway the uh i'm just not gonna say it so no you're fine you're fine you're you're gonna do great you're being intentional you're being thoughtful you're being wise you're gonna pay off your house in 18 months and you're not gonna skip a beat you're gonna have millions of dollars in your accounts and you're going to be great so proud of you very well done very well done john good show thanks man good job james and kelly in the booth i'm dave ramsey your host we'll be back with you 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 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

Channel: The Ramsey Show - Full Episodes

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Id: TowzKPGD51M

Length: 121min 5sec (7265 seconds)

Published: Tue Mar 23 2021