Drain Savings to Pay Off My House?

[Music] starting off this hour sarasota florida jamie's calling hi jamie welcome to the dave ramsey show hello dave how you doing today better than i deserve what's up in your world wonderful well dave uh it is no surprise that 2020 has been a very challenging year for everybody freaking dumpster fire absolutely oh that's a very good way to put it i want something at least good to come out of this year so i'll just go straight to the point i have 33 000 in savings i owe in my house 32 000 and i'm not gonna lie i'm very tempted to pay it off so i could say i ended 20. and something good that happened in 2020 was that i paid my house off i understand that i would be depleting everything but i do i wanted to let you know that um i do uh i bring about maybe 60 to 70 000 a year and i do have a steady job i'm very grateful for that but obviously you know maybe i don't know if it would be a good idea to pay off the home and then restart um the uh what's it called emergency emergency fund and again so so uh what is your take dude you've done really good how's it going 33 000 that's more than most people ever see way to go yeah good job and um and you only owe 32 on your house so life's pretty good you make 60 you got a steady job are you you're 100 out of debt other than that right absolutely yeah i'm on baby step six so the way you're using your words it sounds like you're single uh actually no i am married and with a child oh how's your baby yes uh my baby is uh one and a half oh perfect okay good very cool well dude you are what's known as an abundance guy you think in abundance you don't think in scarcity you think good things are gonna happen you don't think bad things are gonna happen otherwise you'd be unwilling to go down to a thousand dollars to your freaking name with a one and a half year old okay so uh yeah um i am two and so i'm kind of like you and the way i'm wired uh there's nothing wrong with being wired either way you just kind of recognize what you are and say well that's gonna affect my tendencies with money rachel's new book know yourself know your money talks about this kind of stuff as a matter of fact and so um but the uh uh the thing is this i have learned in spite of the fact that i always believe everything's going to turn out it doesn't always on the short term on the long term it does but on the short term you can get kicked in the knee as a matter of fact with a young family and a one and a half year old if you in if you intentionally took yourself all the way down to almost no money uh that's like sending out a an email to murphy that says come screw up my life no you're asking for trouble is what i'm saying and uh and so the beautiful thing about when trouble comes and you have 30 grand in the bank you just go trouble wronged house dude go next door to the broke people right leave me alone trouble i ain't here when you break something and you have money it's an inconvenience when you break something and you're broke it's a freaking drama and so that's this is the way things work and and i love your question and i'm the guy that wants to be out of debt more than anybody else on the planet so let me ask you this this is october thank you okay we're good and uh my brain's coming back now so could you not save up like three or four five thousand dollars by the end of the year oh sure um i i in fact i actually i have three more paychecks coming this year and i'm probably saving about uh roughly about two grand each month so six grand plus one grand is seven thousand dollars in a household income of sixty that's a little bit below your three to six months of expenses but we could probably say that's an adequate emergency fund and we could probably give the mortgage company the uh the glorified pinky on uh on new year's eve sure uh yeah and you would and you wouldn't you wouldn't have a problem personally with that you think that would be a smart idea just kind of get rid of it one thousand dollars no that's not smart eight thousand dollars yes i can go with okay but even then i'm going to hold my breath through february and build that on up a little bit more because i want a really healthy emergency fund because i just found that the emergency fund is murphy repellent and so but it's a really good question number one you got thirty three thousand dollars your stud way to go number two you're thinking i wanna be out of debt number three you think good things are coming in your future and i think it'd be a great way to end 2022 on new year's eve at the party push submit on the payment button and be done baby but i want you to have a the healthier your emergency fund is between now and then the more comfortable you should be with a baby it's not me i ain't gonna pay your bills but i was gonna say the more comfortable i would be but it doesn't change my comfort it changes yours so the more comfortable you should be if you have that emergency fund built so good question thanks for joining us you know over the years of doing this show i've had a lot of questions i'm not poking fun at jamie at all because he had a really good question the number of people who say i want to do such and such with the emergency fund if you ever ask yourself that here's a way to solve it okay is what you're asking an emergency if the answer is no then you shouldn't use the emergency fund for that now i think we're going to go on a vacation we're going to use part of our emergency fund you have an emergency vacation now some of you are so freaking immature and entitled that you have emergency vacations but those of us that are grown-ups we don't have emergency vacations although you get to the point sometimes where life beats the crap out of you and you feel like you deserve a vacation but if you don't have any money by definition you don't deserve it okay sorry no whining so sharon and i were laughing about that this weekend the first thing we bought once we kind of got in a cool position was we bought this little bitty brick house down on the lake it was our lake house it was just a little bit better than camping it's kind of lake house lake house but we paid cash for it of course and we would drive down there we had little kids and little kids man three of them drive you nuts we love them but they drive you nuts and sharon would be getting down there on friday to the lake house and she would always just say i need a vacation i need a vacation so then we bought the lake house and she's like you just spent all our vacation money i need to no this is your vacation we're going to the lake house yeah but i got to work all weekend at the lake house you know it's not going to cook and still there's kids are still here so i still have to work and so i actually had this uh i don't know what you call the thing like a planter uh made at the local print shop and they engrave in the side of the uh the pottery and it says sharon's vacation and i put a fern in it and put it on the front porch of the lake house we still have that thing 20 something years later it's in the new lake house now by the way and uh which is way better than camping but uh yeah sharon's vacation emblazoned in the side of the planter we all get there we all feel like in quotes we need stuff but it's not a need it's a one it's not an emergency it's a one this is the dave ramsey

Channel: The Ramsey Show Highlights

Views: 666,586

Keywords: the dave ramsey show, budget money debt cash, real estate, insurance, how to make money, dave ramsey, save, credit card, compound interest, buying house, buy, snowball, Drain Savings to Pay Off My House?, money, debt, personal finance, budget, emergency fund, mortgage

Id: 0ys36eGbtLc

Length: 7min 56sec (476 seconds)

Published: Tue Oct 06 2020