Stop Making Banks Rich and Start Making Yourself Rich!

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 christie wright ramsey personality number one best-selling author is my co-host today as we take your questions about your life and about your money open phones at triple eight eight two five five two two five that's triple eight eight two five five two two five chad starts off this hour in minneapolis hi chad welcome to the ramsey show yeah thanks for taking my call dave and chrissy uh so a little backstory um separated in divorce in 2020 um was able to you know contribute to all the bills through the divorce late last year and was able to pay off 30 grand in debt and actually paid off my all of the balance of my student loan seven thousand dollars this morning so i'm officially debt free good for you that's awesome wow yeah so 2020 was was rough but we got through some stuff um so my my situation is i am currently living in a home owned by my by my company um for free it's a great place i just cover utilities i'm sort of a pseudo caretaker of the house with no with no plan to need to move off of that uh through the divorce uh i gained sole possession of a rental that we used to live in we only lived there for about a year about seven years ago so i'm aware of that you know there's probably probably some long-term capital gains tax um on that i owe 45 it's worth about 105 so capital gains on that i think is 20 of about twelve or so twelve thousand dollars to i've got i've got a great renter in there it's actually my ex-wife's family who's living in that house and looking at with where real estate is now me not needing a place to live does it make sense to sell the house pay the tax put that money that i would make on that into the market so that i have money for a down payment in the future wow there's a lot of crap going on there all right uh uh yeah i mean it to me it's actually moronic to say my ex-wife's in-laws are living in it and they're great renters these things in the same breath he said that in the same breath and it's my ex-wife okay okay great what's your definition of a great renter they pay they pay they're clean um i'm guessing you have a good relationship sort um her myself and my and my ex-wife family uh we still get along really well so it wasn't it wasn't like this terrible this you know back and forth divorce you know we developed a nice guy like that so he's a nice guy i mean this is i mean this is great that's good i'm happy that's okay yeah that's good we're shocked we're shocked chad but it's good it's good there's nothing wrong with it so you don't have a home uh that you live in because your company that you work for furnishes you one you're 100 debt free you have your emergency fund in place or we'll have shortly what is your income uh 105. okay plus a plus a a a hot or cold uh bonus annually in february okay so got one this year but but so generally speaking set aside the whole drama of the divorce and the in-laws and all that stuff and just say okay we have a rental property that we owe 45 000 bucks on do i sell it i don't know why you would well so the looking at you know let's just say three years ago so i'm i'm tired of that company if i were ever to if you ever needed a house and you wanted to take the money out of that house you could just sell it then right so what's the why why why sell it now well to because it's it's i don't know that the house is ever going to be worth more and why wouldn't i could i and well be this with with the market that that i'm that i'm in it's a it's a rural town um only about 500 people um houses don't fly off the shelves and i'm just looking at would i make a better return on my money is it an area of the city that is blighted i mean if you you wouldn't buy this piece of real estate as an investment were you buying real estate today um it i it's not a it's not a great area for buying buying real estate as an investment why i don't know i guess maybe it is i i i i bought it on a foreclosure um that's not the point why why you made a clear statement wise it's possible that your statement's correct i wasn't saying you're wrong i'm just understanding why you're just saying it's so rural like it's a row house it's in inner city house right oh no no it's not an inner city it's a rural rule yeah i probably would not buy that as a regular one i wouldn't disagree with you driving 20 minutes to go to walmart yeah there's not a vibrant enough market for it to increase a lot in value is what you're saying because the market's not very big so that's why you wouldn't that's why you wouldn't buy it again okay right so when is their lease up so through i currently do not have a lease with them so so it's we've just been kind of poking along at it what do they pay in rent 700 is that market uh yeah that's that's market okay uh the mortgage the mortgage on it is is um okay well you know we got to take the whole thing into consideration i'm not worried about the in-laws because you're not ex-in-laws because you're not so uh but if with a standard tenant in there or with them i'm going to offer them a slight discount on the rent to stay in the property with a 30-day notice to leave which is what they have now and because they don't have a lease and the discount is to keep the property sparkling clean and show ready because we're putting it on the market if they don't want the property to be shown and they won't keep it sparkling clean for a slight discount in the rent and continue with the 30-day notice promise then they need to go ahead and leave and you need to put it on the market yeah i think uh i i think that's more so i just wanted it yeah now how to how to couch that in a conversation where it doesn't feel like you're hitting back from the divorce is an interesting discussion too right right right yeah and that that's that's the delicate balance is that you know great so it's also it's also okay to wait a fall to do this and let this all get a little more water under the bridge if you want to be nice to if you want to be super nice too right well yeah so i mean but there's you don't need the money and there's no rush no i don't you don't don't need the money it's but but looking at could if i if that money was in in a mutual fund could i be looking at 10 because i'm not you know obviously the longer they stay in the rental the more principal that's completely okay to move them now but the closer to the divorce you move the more they're going to interpret that as hitting back regardless of what you say because human beings are just going to act that way i think do you think yeah i think it just yeah the the timing and the way that you present it is going to matter a lot yeah and uh but there's no even what you would make on it is there oh and by the way your capital gains calculations wrong you need to talk to your tax guy it's not based on the equity in the house it's based on what you paid for it minus the depreciation you've taken which is your adjusted basis subtracting from your sale price what you owe on it has nothing to do with the calculation [Music] you know healthcare has gotten to be ridiculous it puts people um you know on the brink and so it would have put us on the brink had we not had chm chm saved our life same document financial life christian healthcare ministries or chm is not health insurance but it is a budget-friendly option and the original health cost sharing ministry for christians get started today and check us out at chministries.org backslash budget [Music] christie wright ramsey personality is my co-host today host of a major podcast movement you ought to check it out it's the christy wright show go to figure and uh it is absolutely exploding be sure you join her on there her devotional 40 day journey back to you living true 40 days to get back to you is a best-selling devotional that just came out back in the fall and it has done very very well thank you very much be sure and check that out our question of the day 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 use the promo code ramsey to get the best possible deal today's question comes from mason in grand rapids my wife has a dream of starting a wedding venue on a rural piece of land and i had the idea of combining my passion for pheasant hunting into this project how do we fund buying the land and building a venue i've actually gotten this question not the pheasant hunting part but the event venue on a piece of land or commercial space multiple times dave and what i encourage people to do that have never had any experience in event planning or event hosting to figure out how to prove their concept on a smaller scale so is there some type of event space that you can sublease to prove your concept get your get your feet wet start to build your skills and say okay this is what we need this when we build when we buy and then you're also going to get cash in the door while you're proving the concept to be able to fund buying either the land or the building or whatever it is that you want to do but but people start with this big dream and i love that because they they have a big dream but i want them to scale it back say what is the a smaller version of that dream to baby step into it to prove it get some cash in the door and learn along the way run your point has run some kind of a freaking test mark yes yeah some way to get out there and prove that you know how to do this a little bit so you know in order to open a restaurant you do not have to build right a restaurant right you you start doing catering out of your kitchen right and then from there you once you've proven some of that you've proven that a people will eat your food and not die right and that they want to buy it some more then the next thing you do is you talk about renting a defunct restaurant somewhere for a little nothing where all the equipment's in there only after you've been doing this a long time do you build a restaurant from the ground up as a small business endeavor and you know so much more by the time you actually do that you know so much more about what you need what you want and what you're missing you might not come out to the country to get married well pheasant hunting place the number one thing i see people believe one of the number one things especially when they're starting out is they they have this idea dave that if you build it they will come yeah it's a field of dreams it's just not true if you build it and you build something good and you try really hard and you chase them down and you have really good marketing and you get really smart if you do a lot of things you can go find them and make this work but it's not just i'm going to build an event space on a farm where my husband pheasant hunts and they're just going to show up it doesn't work like that not online or in person by the way just because you put a website up doesn't mean people are going to come to it you have to do more than that you have to be more strategic so prove your idea on a smaller scale before you go buy some land yeah like be a pheasant hunt guide on other people's land or on your land with no facilities required right a day trip type of a thing before you build a freaking lodge yeah you know and um so make sure you actually can find the birds son yes you probably know salary wouldn't be doing this uh but i mean you know and prove that other people will pay you for the privilege of hunting beside you because you're going to lead them into birds so um the same thing so i don't know this sounds like uh two ideas that need a lot more work and you're getting ready to go broke screwing around with them if you go build build big build big buildings with debt well and here you know i can see 400 000 worth of facilities here that nobody visits well and to your point which we didn't even hit on this but these are two separate ideas that have nothing to do with each other other than the fact that land is involved and dave one of the things i see a lot you might be a redneck if you get married in a pheasant hunting lodge okay people because it's so easy to start a side business which is what i love helping people do through business boutique it's so easy to start something small on the side from home online whatever well because it's so easy dave people act on all of their ideas they start 15 businesses they're like oh i do hair and i do landscaping and i walk dogs and i cook barbecue and i'm also an optometrist on the side and i do pheasant hunting and i do wedding plans like no one knows what you do you're not known for anything so pick one thing do it well these are not related these ideas are not related so if you wanted to do them all conveniently at some point they're marketed different you have separate markets separate brands separate purpose separate time frame no no bride wants to walk down the aisle with gunshot in the background it's just true shotgun wedding it's a true shotgun wedding it takes on a totally different meaning yes it does all right so yeah um i mean you could hypothetically back into ending up with an event barn on the property that had some lodging that could be used for both but they really don't overlap these are not i mean you'd really have to push this so um so mason i start small somewhere else don't be building buildings for brand new businesses because you're wrong about what you think the thing about business you can always there's three rules of business and they always stand true here they are it's going to take twice as long as you think it's going to cost twice as much as you think and you're not the exception those are the three rules of business yeah and so uh because you get all hyped up and piped up and i do too i get all jammed up about my latest entrepreneurial idea that i had when i was walking this morning listening to an audiobook and i went i can do and then all of a sudden you figure out a million dollars later you were wrong so uh yeah i yeah take your time and uh proof text it yep find a way to test your ideas in the market ah lucinda is with us lucinda is in charlottesville virginia hi lucinda how are you hi dave how are you better than i deserve what's up wonderful um so i am currently ten years into my current career for which i took out a student loan um and my student loan is currently in collections um i never really understood the difference between like default i mean forbearance and uh deferment so now it's landed in collections and i wonder if i can negotiate my student loan down back to like its original price this is a federally insured student loan yes okay no the principal balance that you borrowed is not negotiable and the interest that has been charged on it is not negotiable the late fees are negotiable and any other gotcha fees other than interest and principle might be negotiable but by and large the most of the number that you're looking at are your principal and your interest because you've really not paid anything on it for 10 years what do you owe about 38 000 and what do you make about 38 thousand okay all right what do you do i do uh coding and billing medical coding and billing okay 40 hours a week 40 yes okay you work for someone or contract i work for someone for a company okay um are you prohibited from taking in more work as a side job no actually i'm actually ready to do that i had a part-time job uh before colbit and then you know covet came and so i had lost that job so if you find yourself if you took on 30 more hours a week of work of billing and coding what could you make a month about couple grand maybe a little less than that 30 hours 30 hours a week worth bring home a couple grand in a month yeah oh yes yes definitely definitely okay all right and so uh to 2038 that gets us out of debt in less than 20 months right yeah i'm i'm and i'm ready i just i've been a little hesitant to call you know and speak with these people because i know once i give them information everything will start over yeah if i don't have the money the only reason you need to give them you don't need to give them any in for any information you just need to get information on exactly what your balances are and try to negotiate away any late fees but not the interest in the principal the reason they won't negotiate that away is the government has guaranteed they're going to get that money from the government if you don't give it to them so there's no reason for them to negotiate it down but get a solid number and then start putting two thousand to three thousand dollars a month on it and you will be done in under two years you have to address this issue now [Applause] [Music] [Music] so [Music] christie wright ramsey personality is my co-host today here on the ramsey show in the lobby of ramsey solutions on the debt free stage mark and kerry are joining us which can only mean one thing they're debt-free where you go guys yes sir thank you for having us absolutely our honor so how much have you paid off we were dollars and 89 shy of 150 000. i'm going with 150 that's called it's a rounding error okay and uh how long did this take you 22 months wow and your range of income during that time just over a hundred to a hundred and eleven thousand cool what do you guys do for a living i'm in sales and uh she does the harder job taking care of the kids in the household that'll do it that'll do it where do you guys live uh eleanor west virginia uh near charleston huntington west virginia beautiful area of the country yes sir beautiful mountains up there wow well welcome to nashville congratulations very well done what kind of debt were you in 150 000 well um some people would say it's dirt and some building materials but we just call it our house so ah you paid off all mortgages oh look at the weird people these are amazing how old are you two well when we did it one of us has since turned 36 but we were both 35 when we finished it off okay all right way to go man and a paid for house what's this thing worth probably 250 275 somewhere in the ballpark [Laughter] oh you got no payments in the world you're not even 40. you rock that's right wow that's amazing guys i love it so what started this journey because most people don't i mean you're weird i mean just most people don't think they can do this and you just said i'm doing it well um we've and i guess part of that we had a little money we at the end knocked out a big chunk that we always sat on thought it was our comfort and stuff and finally had to get over putting it you know where the money was going it was still ours one way or another but i guess going back a little while not to get in too much of my job i love my job and i love my bosses but their technic their tactic of i guess being a sales manager maybe was more of a doom and gloom you know if we don't get this done next month who knows what's going to happen and i got to a point where it was like i don't want to rely on what may or may not i want to know what i control and uh at that point we started and went after the house we said we're getting this done and if they try to use some of those we're it kind of bounces off you know right not that we're in trouble when you don't have a mortgage yes sir [Laughter] yes sir i like it i like it that's fun so how did you guys get connected to us well uh this job that i was in when i first started my career i had kind of a small territory and part of it was eastern kentucky and there wasn't too many stations down there uh one of them little hick country station and you happen to be on there i fit right in i thought it might suit you but i ended up listening to it and that's how we kind of got on board the uh and actually i'm not a huge reader i read some if it's something that really interests me and actually my wife bought me the book when i started talking about you that kind of got us involved and kind of took it off and we went from there but probably on the house we slowed down as far as we weren't totally focused and then all of a sudden like i said that kind of just ignited the you know some of those things and we decided we're going to get after it and here we are wow so did y'all have debt other other consumer debt before you start paying off the house when you when you listen to the show no um when early in our marriage we did just a little bit but it was something that i remember the first time we had a car payment a long time ago but it was something that never sat well with us you know we paid off that one and you know i don't know 10 much just because we wanted to get rid of it and we when then we never went with that and never sat on it but like i said we kind of got focused and honed in on the house yeah y'all been weird all along you're just a little weirder now i love that so carrie 22 months you guys had to lean in and sacrifice what was the hardest part of this um i don't know if it was really that hard in a lot of ways just because i'm a real person so having the budget was actually easier for me and he would think you know i wasn't interested but i just would say like okay what is the budget for this what's the budget for that and so he said it and i just followed it and so i mean adding on to what she said as far as she i said it she implemented i mean one thing i wanted to say was on stage especially here the last few weeks i'm not emotional type but i'm getting there but i've never been so humbled in knowing what she did when for probably the first 12 months i didn't get it i mean i kept selling her you got to be involved because you hear the people that aren't both of them meeting we never met went over budget the whole time she didn't care to look at it the thing is she was more in than most people even think about being in you know she let me uh you know she would tell me tell me what my budget is and then halfway through the month she goes how much do we have left in groceries i'll be like oh here it is and she'd just keep it under and uh very humbled by what she what respect and trust she put in me to lead us in the right direction and i didn't want to fail her that's part of the reason i kept pushing to do it shorter and shorter and shorter and you know we pushed harder to get to the point that plus i want to do it while she was still i mean one of us was still 35. he's wearing the older woman thing out here let's see i'm older than matt he's come on come on don't let him get away with that kick him in the shin it's only ten months that's about what that's about how much older sharon is than me so i'm married to an older woman for about 10 months a year yeah that's right yeah matt's three months and he reminds me during those three months on the he's like well one of us oh he's two he did two wow well it's good it's a good trend then all right way to go you guys we're very proud of you so you have no payments in the world no sir how does that feel good i'll let her answer go ahead no it's good it's you know you didn't realize what but it was a weight that was lifted when you know when it was over so it was it was good to be done yeah you feel free yes you do yeah and and you don't realize it until you get there what that feeling feels like you know you're because you're working you're working and working and then when it's over you're like oh it does feel lighter yeah it's almost surreal yes it is well done very very well done what do you tell people the key to getting out of debt is what did you all do the key things that made this possible to me it was all about focus which you put your your focus on your sights i think you had somebody under recently talking about putting all guns on the target you know we were focused on what our goal was and i'm pretty you know she say i can get single track minded you know i'm on i didn't want tracks and i'll follow that until the end you know to the station we're getting to but uh just being focused on what we were we were going after and that's all we we cared about it's amazing too because when you started telling your story you talked about you didn't want anybody holding anything over your head or being able to to scare you with this situation or what if this happens it's like nobody has anything on you now you've got all the power all the options in the world absolutely when you're debt-free it's just that's exact that's one of the things we try to help people understand it's not just financial it's also the sense of power and control and options that that financial freedom allows and you guys have that well done y'all that's amazing well as young as you are if you just start investing just a house payment from now on you'll be multi multi multi millionaires yes sir i mean that alone wow very cool so you changed your family tree brought the kiddos with you what are their names and ages good mom we have landon is 10 and jalen is seven cool awesome so have they been practicing their debt-free scream do they know what we're doing let's see the side on uh well i don't know to your right side of the stage have been practicing maybe the other side not so much they might join us we'll see all right very cool with our family trees changed i'm proud of you guys we got a copy of rachel cruz's book for you know yourself know your money new york times best seller and hopefully that will help you out guys out as you continue on your wealth building journey very very very well done good stuff all right it's mark and kerry landon and jalen from charleston west virginia 150 thousand dollars paid off in 22 months making 100 to 111 count it down let's hear a debt free scream here we go three two one [Applause] oh you gotta love it congratulations that's amazing man house and everything everything 36 years old i mean just like you said the options the possibilities of what they can do now this young it turns out it's incredible a lot of money turns into a lot of money when you quit making banks rich the odd thing happens you make yourself rich amazing correlation this is the ramsay show [Music] [Music] [Applause] [Music] well if there's one thing we all know by now you cannot invest alone you need someone in your corner someone in your life who knows the market knows about investing that can talk you off the ledge when cove it happens or whatever it is right look i love do-it-yourselfers i'm a do-it-yourselfer but i don't even work on my own cars anymore and i certainly don't pull my own teeth and i know a lot more about investing than most of you and i don't do my own investing i don't do get caught up in some reddit group investing in game stock gamestop uh you make rookie mistakes you get greedy you lose your butt and you get into all kinds of problems it was fun to watch it was kind of an interesting news story for about 36 seconds but it's not an investment strategy when i christy i remember um you and rachel were probably little girls and beanie babies were crazy yeah yeah yeah and um we consequently have a lot of the grand babies play and the dogs play with the beanie babies now my mother-in-law just gave carter a little hedgehog i was like where did that come from she was like it's our beanie baby collection that was going to make us rich yeah that's it that's it i had people call me on the air saying i'm moving my kids college funds into beanie babies beauty babies sure and i of course was not nice to them and ripped them to shreds for being so dadgum foolish but this is the kind of crap you do you get caught up in whatever the latest thing is i remember you know when the iraqi dinar we're going to buy the currency in iraq a failed country which of course makes it a very stable currency what a dumb bud idea you know and people do stuff like this and they put money in things they shouldn't put in that are fattish or new or what listen don't do that you're trying to you're trying to build wealth so you need somebody in your corner and we have put together a group of people we recommend called smart investor pros cause you're a smart investor and they're the pro to help you and they're gonna teach you and you're gonna understand investing and they're going to calm your little butt down so you don't do stupid butt stuff like beanie babies does that sound absurd sounds absurd and then the second round was somebody told me that some of those beanie babies my dog was playing with were worth five thousand dollars on ebay so i jump on ebay and they're selling for they're listed for five thousand dollars but no one's ever sold one right sure listed but they're next year i cannot find any confirmed sale of beanie babies over a hundred dollars in the last decade you can list anything for about anything doesn't mean you can lose you yeah my wife my wife is looking at a piece of real estate she goes but they're asking and i don't care what they're asking it doesn't matter what they're asking it's nothing with the value you can ask anything so text of the word invest to 33 789 if you're ready to do some investing we'll hook you up with a smart vester pro who will give you a oh god a calm ala boring steady predictable result plan which is the way you build wealth the tortoise beats the hair every time i read the book the hair is running around all over the place buying beanie babies but the tortoise is slow and ugly and wins text invest to 33 789 one thing i'm sure of not a single smartvestor pro in the history of our involvement has recommended beanie babies as an outlet okay so other than something for your baby kids to play with or your baby dog to play with that's simple text invest to 33 789 invest 33789 and smartmister pro will help you get your stuff going for your baby step 4 retirement five kids college your long-term wealth building tools all of this stuff preston's in greenville south carolina hi preston welcome to the dave ramsey show hey dave long time listener first time caller well thank you first of all first of all i want to say hello to you and christy and i want to thank you for help saving my financial life well bless your heart thank you sir how can we help today yes sir well this is it feels like a rhetorical question and actually after hearing your debt free scream it's both intimidating and kind of inspirational because the question i have is i'm completely debt free except for my house and i only owe 80 000 on the house so and i know it may sound crazy but i just had to ask the question anyway in about two years i could use my return but my 401k to pay it off if i had to but i feel like in the meantime i could use the money that i made just to pay it off and i was just wondering is that a good idea more than anything else how old are you because at 59 and a half in my state you can use your 401k so you're and a half give or take right okay and how much is in your 401k today uh what about two teams okay and what do you make a year uh i read about 80 000. good for you well you've done real well congratulations the two primary things that we found when our ramsey team did a study of the largest study ever done on millionaires in north america the two primary things we found that they did for their first one to five million dollars in net worth was they got their home paid off that was a big chunk of it and they had a big chunk in retirement savings so you're heading correctly on both of these issues and so anything we can do to get that house paid off the fastest we can get it paid off the faster you're going to build wealth and the more wealth you're going to build so yeah you're going to go ahead and pay that off in the next two years with your income sure yes that's the goal but i was just i was just actually i said well i i feel kind of silly asking no it's not it's not silly at all it's a good question it's a good question but my point is you want you want a big bunch of my point is you want a big bunch of both at the end of the game a big bunch of paid for house and a big bunch of money piled up in your uh investment account when you get there so christy what we found was and he's right on track to be there by the way um was that these millionaires the typical millionaire in their first uh what was a in their first little bit of wealth their first million to five million dollars had about a third of it in their home was paid off and a lot of them hit this model exactly like a statistically significant number and uh and about two-thirds was in their 401k or the roth ira so we find somebody with a million and a half net worth half a million paid for house and a million in their 401k and that we found that over and over and over and over and over again and he's he's really on track to be there probably in about a decade if he doesn't do much else yeah if he gets the house paid off that house will probably be worth 500 and his you know his 210 he'll be adding to it during that decade and it'll be growing and doubling on its own because he's got it invested i hope in good growth stock mutual funds so he'll be right there yeah the hard thing and we've received this call so many times or some version of it whenever i've hosted with you but the the hard thing is when you get close to the finish line when you get close to either paying off your last debt if it's just consumer debt or your house if that's the baby step that you're on you get so antsy to do it to be completely debt free that you start looking at ways to fast forward it and say okay how can i take money out of my retirement to get it paid off quicker and then i'll rebuild my retirement but that's the reason i think it's this good reminder that's the slow and steady wins the race you want both you don't want to sacrifice one to be able to fast forward with other you're still going to get there it's not that you're not going to be able to pay off the house but it's i think some people and we've had that call even with coombs tumor debt should i take money out of my retirement to you know pay off this last debt we're like no you know you want to make sure that you are still letting that money grow and not paying the penalties on it you know when i went broke in my 20s one of the things i did was i wanted to talk to old rich people i'd been young and rich i didn't want his opinion right it didn't work out well i want to talk to people with no hair and gray hair that had money and talked to old rich people and so how did you do it and um they knew what i was looking for they knew i was looking for a magic pill quick they knew i was looking for a uh you know jack and the beanstalk i need the beans right i need i need the magic i need the special sauce i need the recipe and more than one time i would have an old person kick back in their chair across their arms and say something like well you know the best way to get rich quick is don't yeah you're like that is not what i wanted to hear we mean don't get rich no don't get rich quick that's the best way to get that's the quickest way to build wealth is don't get rich quick because get rich quick leads you into stupidity the bible says he who hastens to be rich will not go unpunished if you're in a hurry you're not going to go unpunished get rich quick always lead you to broker not to richer there's no shortcut to any place that's worth going it's common sense it's not popular in an instant culture but it's the truth this is the ramsey [Music] chef [Music] this is james childs producer of the ramsay show did you know the ramsay show is one of the most popular podcasts in the world subscribe or follow today wherever you listen to podcasts [Music] 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 christy wright ramsey personality number one best-selling author is my co-host today as we take your questions about your life and about your money mike is in pensacola florida to start off this hour hey mike how can we help hey dave and kirsty thanks for taking my call how are y'all doing better than we deserve what's up well uh my wife and i are debt free minus our house we have an emergency fund we're about to start investing in a 401k and don't worry we do not own beanie babies we're good so i'm calling about our home we're looking to relocate to a better school district and a safer neighborhood and you know real estate of course and this market's crazy i know nothing about it so we're looking to see if we should sell now and buy later being that we have the available funds for a down payment and we have the place to live in the interim for free my father-in-law's house he's being very generous um as far as future predictions will the market go down later should we sell our house go live with him and then buy later what are your thoughts on that i do not think this is a bubble okay and that would be the only way it would go down i think the i think the craziness will slow and the rate of increase in prices will slow but i don't think this is a false bubble that's going to course correct and the house prices in pensacola florida are going to go down dramatically anytime in the next decade yeah what that means is as you step out of the market every day you wait to get back in the prices are going up for the rest of your life so it's definitely not a good idea to sell now and buy later it's a good idea to sell now and buy now sounds like it nothing nothing nothing wrong with that because it's an even swap you're going to get the benefit of the heated market on the sale and you're gonna uh have the problem of the ben of the heated market on the buy so i'm curious about this dave because we we got some calls like this last week and i was talking to you about this even off air but are you thinking there's gonna be any kind of dip because right now like nashville specifically with these cash buyers coming from california so it's so much people are paying so much over appraisal and list price you're not seeing that go down you're thinking it's just going to level out and then keep going i mean i'm curious about this because we we hear about this all the time the only thing that dropped in 2008 2008 first time in my 35 years of having a real estate license that prices across the nation went down it's the only time i've ever seen it was in 2008. now i've seen particular markets bubble up and pop and those have to do with particular things in those markets uh but you know florida does not have any of those issues i don't you know for instance i'll give an example i don't know what's going to happen in california yeah because there's a mass exodus people are leaving there's there's a stream of u-hauls of interstate going down the interstate leaving the state as fast as they can possibly flee and so uh and they're going to texas tennessee florida uh and buying houses and so what's that going to do to that real estate market yeah eventually if enough of that continues mathematics tells us that that will hurt prices in california it hasn't yet california's quite hot you put a house on the market you'll sell in three days right now in l.a and so it's not like all these people leaving have affected there's that gummy people there that you know that you you take a while to empty the state you know and so but they are they are pouring out of there for sure and uh those of us that are in the markets that they are coming to know it yeah i mean we go out here at the commercial breaks right here and uh you know we i i haven't been out of this room to go out and meet people at a commercial break i don't think a single time in uh five months that i didn't meet somebody from california that's here looking at houses i mean every dad gum and so that's an example of a particular market that has unique problems in that case created by the governor uh but uh and because covet is not worse in california than it is in tennessee in texas and so it's just absolute bs but the uh uh but the bottom line is you know and we've seen this before in other markets where um you know something unique happens a a a a a a manufacturing plant shuts down and it was a that labor base was a big part of that market then you can see that market correct but overall just because it's going up does not mean it's going to come down matter of fact you have a hard time proving that you know i i can think back again i got my real estate license in 1978 i have seen very few times that you've seen prices go down from where they were four months before and stay down for more than 20 seconds yeah i just wasn't sure if it was such a unique situation because of the amount of overpaying yeah well they're overpaying but are they if enough of them are going to set that new if enough of them are doing it that is now the price that's the new bar yeah and so the definition when i went through appraisal class and when i was getting my degree in real estate the definition of value of market value is what a willing buyer is able is willing to give a willing seller where neither party is in duress so in other words if you're buying a foreclosure that's someone in duress you wouldn't count that in an appraisal but if two perfectly healthy situations and they're paying a whole lot even more than asking price then you know where we're getting multiple offers on a property and that kind of stuff you know put it on the market you get 30 offers in a weekend those kinds of stories are happening all over then that is the new value so when people say i'm not going to overpay for a house they're not overpaying that's the new well i mean you know you're you're overpaying what it's what it's what it would have brought two months ago right right right and you're overpaying what it would have brought monday yeah but by tuesday yeah i don't know yeah because these prices are being driven up by this supply because what has happened is with the lumber shortage right it's driven the price of lumber up the cost of new housing is going up new housing is also more harder to get out of the ground and so we have we have an inventory problem and so anytime there's a shortage of anything and there's more people chasing that thing than there is thing you that's a supply demand curve from the seventh grade economics class it drives price up yeah that even works with beanie babies [Laughter] when too few when too few people i mean when a big bunch of dollars are chasing too few things yeah then those things go up anything that has scarcity in other words you'd always see the price go up and so what will happen is is this market will calm down as the inventory gets rebuilt as the lumber factories get to build and get to making lumber again at the same pace or an increased pace to offset this and the prices come back are they at least the lumber prices will come back down that i do think but that's not going to necessarily affect real estate values overall so anyway yes i i don't have any problem with you buying right now or selling right now but i would do both of whatever you're going to do get out of the market whatever you're going to do i mean it's uh i'm enjoying watching the real estate that i own go way up in value it's just awesome yeah kind of kind of like it so you know and that's that's the stuff so my goodness yeah that's what i would do i think it's time for you to move sir and i would and i would buy when you move this is the ramsey show [Music] so 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] so [Applause] [Music] chrissy wright ramsey personality is my co-host open phones at triple eight eight two five five two two five nick is with us in new york city hi nick how are you hey dave christie thanks for taking my call sure how can we help uh so i'm feeling a little stuck because of prices in new york city so um i'm 24 years old i just started working as a software engineer about six months ago and right now i live in my grandmother's house um she's graciously like allowed me to live here for almost nothing since college which i you know really appreciate um but i'm definitely ready to move out so um what i want to do is buy a condo with that 20 down to avoid pmi but because of prices in new york i'm not sure if i'll be able to afford that down payment for like another three years or if i run with friends like that would just push the savings goal like further down the road so i need a little advice on what i should do there what are you making so uh it's gonna be about 100 growth and uh it's like 6k per month after taxes yeah no not not bad for 24 man well done got a great career ahead of you you're obviously not only a software engineer you're obviously a good one well done uh very cool yeah you are in a very very expensive uh real estate market at least for now i don't know that it will remain that way i think delaying buying in new york city would be a real good idea right now because that is one of the markets that we may see some price adjustment because of the you know the collapse of so many businesses in the area and the collapse of the economy in the area and um so and the number of people leaving the market so i you know i personally would not be in a hurry to buy there um and so i think saving some money is a good idea and um you know uh how did you end up uh where are your parents how did you end up with your grandmothers so my family lives in georgia uh but my grandmother has a house in new york and uh it was easy for me to get to college you know if i lived up here so um you know everything just worked out for me to stay in new york but she lives in the same home uh yeah this is like her summer house she uh goes back to the caribbean uh you know for half the year so right now she's enjoying the warmth down there hmm okay so you have six months a year that she's not there roughly give or take right but um we do like have other tenants in the house um so like some of the rooms are being rented and um it's like i do live with people it's you know i'm ready to get out of my own you know at 24 and uh you know kind of start lifeing myself so okay go wrench or something it's not gonna it's not gonna delay you that much your career is not you three years from now you're not gonna be making a hundred grand anymore you're gonna be making more don't you think yeah definitely yeah considerably more you should be on a pretty heavy uptick i don't know christy what are you thinking well it's whenever people ask questions about should i do this and some type of sacrifice it's like it's not bad that you're living there but you said yourself you're ready to move out and you're 24 years old you're a young man you want independence and i don't blame you so to dave's point it's not going to set you that much back financially whenever you're ready to buy he wouldn't you wouldn't buy right now anyway and then in the meantime for those three years you have the dignity of your own place and doing your own thing and paying a little bit of rent and i think it's going to be worth it on the journey to you to get to be out on your own so there are some sacrifices that's like yeah let's make this sacrifice because we're gonna be able to save some money there's other ones like hey this isn't gonna set us back that much but it's gonna give us the independence and dignity along the way and that's worth it i think this is one of those things we need to find you need to find something fairly inexpensive to rent we're not trying to spend a whole bunch of money here because the more you spend on rent the less you're going to have for a down payment so that part of your equation is actually correct but is it going to slow you down or keep you from buying because you came out and you know got a rental no so i'm going to look for something inexpensive we're not trying to make a statement with your rental property quite if you do make a statement the statement is i'm cheap that's the statement you're going for yeah it's not the uh i'm cool don't don't make an i'm cool statement with where you go to live all right and uh and don't justify it and don't rationalize it and don't go well it's to eric and don't give me all that crap because the more you spend on rent the less you're going to have for the down payment the longer it's going to take you to buy and we don't want to do that but i think it's worth it for you to just in your personal development to go ahead and make that move i agree with christy so hey thank you for the call open phones at triple eight eight two five five two two five also in new york city mike is with us hey mike how are you hey better than i deserve dave thank you sure how can i help sure uh so i have a question for you uh i did something a few months ago that i know you would advise against but uh it was before i found your podcast so don't be mad at me i'm not mad at you it didn't hurt me that's true so i did a cash out finance uh when the rates went real low and i was able to drop my mortgage rate uh over a full point and i figured hey while i'm at it why not take out some extra cash to have but um you know now i have this extra debt that i have to carry so my question is should i go ahead and repay this thing back and pretend like it never happened or should i try to invest it um i got it at a pretty low rate um i'm just trying to see what i should do with it well i agree with you i wouldn't have done that but now we're there so we're not gonna we're that's water under the bridge that milk is spilled so um so you're out of debt except this home uh no i'm on baby steps four five and six um and you've got your emergency fund in place and you're already putting 15 not counting this money and so regardless of where the money came from if you have a pile of money and you're in four five and six you would say you're going to use it on four five and six four is underway you have children yes okay is there college fund underway oh yeah it sure is uh you know still saving towards it but they have a good amount for themselves okay then baby step six is pay off the house early right right exactly and so we would use if you got a bonus equal to the amount in your savings in excess of your emergency fund you would throw it at the house wouldn't you yes i would yeah so i just thought at the house yeah the problem with you know i mean my thing was the closing costs were about 20 000 so i feel like i'm just basically you know kind of throwing that money away uh yeah every time i do something stupid and it costs me money i call it stupid tax yeah but that you can't get that money back no that's true i just uh you know i just what i did was i put the money in a mutual fund for now um to try to let it go somebody had already had it it doesn't matter that's just not that's not a path that people use to build wealth it doesn't work and so we don't you know never i've never talked to a millionaire said i borrowed on my house as much as i could possibly borrow my entire life and i refinanced it off and took cash out and put it in a mutual fund and that made me rich i've never talked to a single millionaire that told me they did that yeah so it's not it's not a methodology that works so even though it's a very costly mistake that that cost is even you can't undo the cost so the only question is now do you want to invest in mutual funds or do you want to work our plan and work your baby step six that's the only question you've got and then you've got to decide that but if it's me obviously my plan the thing we teach here at ramsey is we'll put excess cash that you've got this non-retirement funds from any source onto the house and pay it off as soon as possible well and mike i think you know that i think you know that probably by listening to the show and what i would guess dave and maybe this is just a hunch but sometimes we i've done this in my life with whenever i made a mistake with money is i resist doing something that's going to make me face the fact that i lost that money so it's like putting it back on the house makes me kind of face the fact that it's the 20 000. yeah so i'd rather put it over here because then i can sort of sideways justify that it wouldn't totally be i think i figured out a way to make it turn the other way and pretend that 20 000 didn't happen if i put it back on the house it's like oh i've got to totally face it let's just face it mike it is it happened bite the bullet put it on the house and just move on band-aid off you're right you're right that's exactly what it is it's emotionally yeah you gotta admit it but it's like um you know uh when you when you the car's gone down in value i don't know whether to sell it well it's gone down in value when you sell it you admit it right you know that's it that's the same kind of thing that's the same issue exactly you nailed that well done this is the ramsey chef [Music] [Applause] so [Music] [Applause] [Music] christie wright ramsey personality is my co-host today i am dave ramsey your host this is the ramsey show in the lobby of ramsey solutions on the debt free stage nathan and alison are with us hey guys how are you good how are you dave great if you're on the debt free stage it must mean you're debt-free how much do you pay off uh we paid off 124 thousand how long did this take um about 30 months good for you and your range of income during that time so we started at about 70 000 that was nate when he graduated and then i graduated and i it was about 120 000 and then we ended up door dashing on the side and then i picked up a lot of extra hours at my job and then we ended at about 140. wow doubled your income yeah with all that the door dashing the extra hours hard work everything what do you guys do for a living i'm a nurse and i'm a mechanical engineer very good two great careers and yeah you do have the ability to pick up some extra work particularly during this 30 months wow cray-cray time yeah wow what kind of debt was 124 000 it was mainly student loans and then in including that we had a small credit card loan and then a small car loan okay so what started this whole journey so back in uh college you know as i was getting ready to graduate i got a new internship at the job i'm currently working at so in with that internship it includes some benefits and some of that was you know like a 401k plan and things like that quickly realized i don't know anything about uh investing or money management and so um went to google said i got i got to learn more about this kind of thing so uh found your guys's program uh started listening to it and the more i listened to it i you know i started making more sense you know i followed the baby steps and you know quickly realized oh my we're doing this out of you know out of order you know right so yeah we're jumping out of order by trying to jump into investment we got to tackle these loans before we you know dive into that so so with that um we followed the baby step plan um started you know we wanted to live like a you know broke college kid you could keep living like that while we made our new income so so i introduced that to allison and then she had some thoughts of her own on that yeah i um i was not really on board so i had heard of you actually i remember in high school my parents at the time were taking fpu and all i had heard was your name and that they had mentioned they were never going to co-sign a loan for any of us kids and i was like so sad i was like like who is this dave guy like i do not like him that's the only thing that's the only thing that i'd heard about you i love it so then when nate had mentioned it i was like i no like i don't want to do that like everything i've heard about him is terrible like but then he started showing all he says is no no no no yeah so um he he started trying to convince me and it took some time but i realized that you're not all that bad how many people have that story dave oh there's a lot to know me is to love me but from a distance oh it's a problem that's awesome that's awesome what was the hardest part like once you decided to commit y'all are both on the same page what was the hardest part about making that change um i feel like for probably both of us staying focused um we have both started this as soon as we graduated so all of like our friends from college were just like starting their jobs making more money and when you make more money you want to buy a house buy a car all that stuff and it's very easy for us to want to do that too but um we realized that that was not the end goal and yeah staying focused for sure yeah and just remembering like i said that just to be patient focused that you know we didn't get into this debt overnight you know it you know we picked it up it's not going to just disappear overnight either so we're in the business of crock pots not microwaves so there you go okay how long you all been married uh almost two years okay so you started this process so we were engaged in yeah we he kind of did on his own for a little bit and then i got on the page after that so i made him an unfun date [Laughter] one more time that dave ramsey caused her to be denied something i love it that's great way to go you guys i'm so proud of you how's it feel feels good if yeah it feels weird still like it's um we live like broke college kids for so long and i feel like it's um hard to remember like hey if you want to get that more expensive thing it's okay now because you're not free like you can do that yeah we got some room in the budget too yeah yeah because you're both making really good money now right and you started this process you were just starting your careers yeah and and you hadn't even entered the nursing world yet so yeah pretty incredible so now you're sitting with a you know 100 and a half income probably from this point forward and no payments in the world you will do whatever you want to do right yes sir i love it well congratulations you guys thank you all right so when people ask you how'd you do that what do you tell them the key is um to remember the end goal and to anything like it's it's short term so um there is an end and you can do it um and that anyone can do it it's not a way of life yeah yep just live like no one else so that later i can live and give like no one else yeah yep and just staying focused on that budget you know you you know you create a plan come up with a plan and part of that plan is probably going to include a budget and sticking to it and holding yourself accountable yeah well both of you are in career fields where you know you enter a a a process of some kind whether it's a prescription a you know a pharmacology thing or whether it's a series of mathematical formulas that cause a bridge to be able to stand up or whatever you said mechanical engineering but correct maybe not but i mean you're still you know you get a result from having done a certain thing and so following a plan to uh to get the positive result is both how you're both trained academically right so it's easy it's easy in that regard because it's just the way your brains are wired up yeah so now you just apply to the next thing right yeah and uh see how how wealthy we can become and how generous we can become it's going to be so awesome you guys are incredible great job so what are you uh what 27 28 we're 26. 26. wow and completely debt-free way to go guys who was your biggest cheerleaders um our parents but to be honest we didn't have a lot of cheerleaders a lot of people looked down on us honestly and thought that this was weird so many people told us like you guys are so young you're never going to be debt-free for stuff like why would you even want to be debt-free like that's not normal and i feel like we would go home and talk about it together and it would almost get us more fired up like this is going to happen and now it happened and it's awesome to say that and that's right and all those people that have all those payments you don't have those payments all those people that thought you were crazy they get payments you don't have yeah they're gonna start coming around now i want to know how you did it can you teach us how to do that yeah that's what they're gonna that's the next thing that's gonna happen plus plus mom and dad who refuse to co-sign for any loans they are super excited about this right now they're going touchdown baby touchdown they're like welcome back welcome back i love it well well done you guys very very well done we got a copy of rachel cruz's book know yourself know your money her latest new york times bestseller and uh it is an incredible book you'll enjoy it so we're so proud of you guys congratulations yeah all right it's nathan and alison rockford illinois wow 124 000 paid off in 30 months making 70 up to 140 count it down let's hear a debt-free scream three two one awesome congratulations you guys i love it that's amazing the bible says no discipline seems pleasant at the time but it yields a harvest of righteousness the ability to delete pleasure for a greater good living like no one else so that later you can live and give like no one else adults devise a plan and follow it children do what feels good there's emotional maturity to people who learn how to sacrifice for a greater goal and there's such a theme today in this slow and steady the sticking with it focusing over time sticking with it sticking with it sticking with it and how it pays off it's not this quick win it's not this all of a sudden you flip a switch and it's easy there's not a magic pill like we've talked about in business or finances or life but if you stick with it then you yield the results the harvest of righteousness we're talking about we're talking about whether it's in your finances or even in your character over time the discipline pays off well and it becomes second nature yeah it becomes your new way of living it gets easier that's right it drills new grooves in your brain that's right and you have a whole different the neuroscience backs it up you know so it's just beautiful well done you guys they can do anything now yeah 26. yeah they can do anything 26. this is the ramsey show [Music] [Applause] [Music] [Music] doing your taxes sucks but what makes it even worse is that trusted brands like turbo tax are actually screwing you with shady sales and marketing tactics that are designed to put more of your money in their wallet so we decided to expose this 800 pound gorilla in an all-new podcast called the fine print the hidden truth to keeping you broke now this podcast the fine print is going to be done every so often george campbell and i do the first one we're going to pull back the curtain on turbotax and show you exactly how they're taking advantage of you plus we'll teach you a better easier way to do your taxes one that keeps you from going deep in debt now here's the thing the fine print the new podcast called the fine print is going to constantly be doing exposes on these industries that are screwing people and we're going to dig into them and uh it's our little investigative reporting arm here and we're going to dig into these things and show you what the fine print says and you can get a sneak peek of the first episode in the ramsey show podcast feed on spotify the ramsey network app apple podcasts or wherever you listen to podcasts so we're going to give you a little sneak peek and then we'll do the official launch of the fine print podcast the new podcast that we're doing from ramsey networks called the fine print because that's the old saying they get you in the fine print right yep and no one reads it the other thing about the whole the tax companies is i think a lot of the average consumer looks to tax companies to say oh well this is a trusted source this is someone that is objective they're going to help me they're experts in money taxes whatever and they they then look to them for advice they get bad advice they make bad decisions and they don't realize what's going on behind the scenes so i think this is so powerful that you guys are are pointing this out and teaching people this yeah well they sell a lot of loans yeah and they don't but the advertisers they're in the lending business more than the tax prep business tax prep business is just a front door but when someone's coming there they're not they're not on guard against it is what i'm saying versus like a credit card company would be more on guard against and so it happened so sneakily and so you don't see it happening oh they're just helping me oh this is what i need to do they're showing me what i need to do and this is what i need to do no that's not what you need to do all in the fine print brian is with us in rochester new york hey brian welcome to the ramsey show hey thanks for your wisdom really appreciate all that you do our pleasure how can we help so i'm in kind of a conundrum and i wanted to get your advice i have about 98 thousand dollars in cash on hand 150 000 in a retirement account 51 years old i owe 61 000 on my business mortgage that's the only debt that i have other than a couple of car loans and i'm wondering if i should pay off the business debt or invest that money into my retirement i'm afraid that i just don't have enough save for retirement what do you make our bring home is around 75. okay how long you had the business too long okay what's happening that means 20 uh 29 years i mean too long i mean like you don't want it anymore what do you mean uh well just kind of burned out on it what are you gonna do with it um i mean at this point really my only choice is already either sell the real estate and go into other ventures or just continue doing what i've been doing and how old are you 51. what's your business it's retail what what burned you out what burned you out uh just 29 years of doing it and not being as far as i thought i should be at this point the 75 thousand year income or is your wife also work outside the home that's combined what does she make the right around bring home is right around 15. okay so she works part-time no she's full-time but a lot of the money goes towards uh health insurance okay well there are several things i'm going to answer several questions that were not asked i'm not going to be 51 and be going for the next 20 years until i'm 71 i'm going to work a business that i'm sick of and that i don't make much money at why would you do that what's the real estate worth um probably around 200. yeah i think you'd be better off being a landlord and get a job or you'd be better off starting another venture of some kind like you said what would you do christie renting yeah i think i think you have an opportunity to rethink things and and you called in about paying your mortgage paying you know paying off a debt but there's a bigger question at play to your point dave i'm going to answer questions you didn't ask i think that the the assumption that you have to keep doing this and be unhappy when you're 51 is is not an accurate assumption and then an opportunity to say what do i want to do with the next 20 years 30 years and and this is obviously not the path so what do you want to do well that's going to help answer the question of what you do today with your business with your money with your debt etc but don't just make a decision today based on well i've got this debt i've got this cash i guess i should pay it off and just keep plugging along going through the motions in your life you're not you're not happy you're not making great money at it that you what you want to be doing what you're proud of what you're excited about you can hear it in your voice you're not excited about it so what what would excite you what would you do if you could do something different so i venture i have uh the money that we've the hundred thousand that we we have cash on hand we've earned by flipping some houses some real estate that we've bought and held and rented and then sold and then up market and that's what really kind of you know motivates me kind of that's really where kind of my heart is cool and i can do that i can do that anywhere and that's the luxury that we have is we can kind of go anywhere our house is paid off um you know some inherently yeah so the the real estate that's worth 200 000 is that what the 61 is owed on yeah okay all right and the business has absolutely no value you don't think um i really i just don't think it does it's retail um floor covering and um there's you know in in a 30 mile radius there's probably 20 to 25 different locations yeah but a competitor wouldn't want another location in your area um they may buy our vet our customers but that's about the extent of it i think yeah maybe i'm underselling it well make sure of that before you yeah before you understand it because your burnout so you're looking at it with those eyes you're looking at it with burnout eyes there's someone else may look at it agreement that says they can't talk about it but i would talk to a competitor that you think is a little that's doing well that is excited in the market and just say hey if i was to uh if you if you were to look at this how would you value it and would you consider it and let's just let don't you don't name a price and you don't walk around with your lip stuck out you say you know just just poking around here i'm i'm really not that interested in selling but i might if the price was right and i want to know what you the kind of number you'd put on it and then maybe he's going to offer you something that makes your jaw drop okay and then sell the real estate and put 140 000 with your 100 000 and do flips i'm having fun though yeah i mean so my biggest uh my biggest concern is the lack of um retirement at 51. if you're flipping houses and making money you can invest it right you got all kinds of time to invest if you just get with it but right you know dude you know truthfully you're just you're you're burned up and just just your voice tone even it changed when you started talking about the houses yes the first time the first time we heard energy in your voice yes your voice audibly changed and when you talked about that you can hear it and that's what's gonna that's what's also gonna fix the retirement thing it's not it's not slogging it out here on something now if you were making 250 000 a year on this business and it was going to take four years to sell it or something i'd i'd slow your butt down until you suck it up and man up and get it done but this thing you need to roll out of this in the next six months and you put that commercial property on the market you need to start flipping houses and take some of that flip money and invest it fully fund your retirement and uh you're gonna have plenty of retirement and you're going to make some money and you're having fun again that's exactly what i do i pay off the cars today that puts this hour of the ramsey show in the bus [Music] hey guys this is kelly associate producer for the ramsay show did you know that over 16 million people listen to the ramsay show every week and a lot of those people listed on one of our 600 plus radio stations across the country to find a station near you head to daveramsey.com [Music] show 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 i am dave ramsey your host christy wright ramsey personality is my co-host today we're here answering your questions about your life and your money open phones at triple eight eight two five five two two five that's triple eight eight two five five two two five dave is with us in huntington west virginia hi dave welcome to the ramsey show yeah i appreciate you having me love listening to you guys and i appreciate your brutal honesty that's his special thing it would be brutal to be dishonest now i appreciate you guys hey i'm a w-2 employee at the va medical center in huntington love that job um and work in the medical field and also uh staff surgery centers with anesthesia under a 1099. uh maybe a quick crazy questions but i put off the taxes to the end of the year on my 10.99 and whatever my account says i owe i put into my sep instead crazy not crazy don't do it your sep is only a deduction it's not a tax credit okay that's alrighty so when you put if you put ten thousand dollars in your sep it doesn't save you ten thousand dollars on taxes if you put ten thousand dollars in your sep and you're in a thirty percent tax bracket it saves you three thousand dollars on taxes so you're still going to owe seven thousand in taxes i appreciate that yeah okay so you advocate obviously paying the quarter leasing yes yeah you're gonna be you're gonna be penalized and fined if you do not pay your quarterlies anyway uh now what you can do if you want to do if you want to just calculate it is the is the 1099 steady is it predictable yes yes you could just up your withholding on your w-2 job for enough to cover it oh okay fair enough and so you know let's say what do you make at your 1099 job a year uh well four businesses four business partners we've probably got an ar of 750 to a million i'm sorry you make 750 000 1099 income no no no no no our ar is that i misunderstood the question no mine is probably 80. my cut would be 80 000 a year on that on the 1099 alone i'm at 10.99 yes yes so you have 80 000 that you have not paid taxes on if you don't file your quarterlies okay and what do you make at your w-2 job um right at 200. okay all right so let's just say the taxes i'll just make up a number when you sit with your tax person and they say the taxes on the 80 grand is 24 000 okay okay then you would just increase your w-2 by 2 000 a month which is 24 000 a year and then you would have already paid your taxes on your 80 and you would not be susceptible i don't think ask your tax person but i don't think you'd be susceptible to a penalty at that point but if you've done if you've made 80 more than two years in a row and you don't pay quarterly or you don't somehow have proper withholding done you're going to be penalized for not doing your quarterlies and i just saving it up and paying it at the end of the year is not an option it is an option but it's an expensive option to use so you need to get a good tax pro in your corner and either do quarterlies or do what i'm talking about if you don't get penalized the way i'm talking about i'm not positive about that part of it but that's another way to handle the math philip is with us and spoke in hi philip welcome to the ramsay show thanks for having me great how can i help yeah so i'm looking at a new job opportunity that's i'll be starting here soon and the new job they are exempt from social security so i don't contribute they don't either which i'm kind of happy about and they take the portion that i would contribute to social security and they put it into a state pension and then i would continue to do my 15 which i've been doing at my previous job into my roth as well as 401k um do i need to worry about not getting social security at all and then adjusting a little bit extra into retirement or am i good just doing the 15 and then letting them dump the money into the pension you're good with that part because here's the thing you've already paid into social security you're going to get some but social security has a negative rate of return you never get out as much as you put in much much less any interest okay that makes sense and so but you if you've already been paying in for several years you're going to get something upon retirement that's what they told me to yeah they said you'll get based off what you paid the last 15 years in the workforce yeah you'll get paid into it you'll probably get the full amount or close i mean by the time you get to 65 but so if you stay in this job until 65 um you know and you put in 15 that's going to end up being your biggest by far your biggest return not the pension and not social security okay that makes sense do it thanks man open phones at triple eight eight two five five two two five christy wright ramsey personality is my co-host robert is in nashville hey robert how can we help hey we're dave how are you doing better than i deserve how can we help so i'm teaching a financial literacy class to a youth group at church middle school and the curriculum has been given to us of what we are to teach and part of the curriculum is teaching uh the individuals how to go into debt basically how to borrow money and use credit wisely and i'm kind of morally torn about teaching that portion of the curriculum but it's kind of mandatory so how do i go about doing that and still feeling morally right about it have you talked to anybody about it no you're the first ones well i mean here okay let me let me ask you this because i don't want to assume something is this a church a bible-believing church yes okay so they don't think that the bible is allegory they they are a bible-believing church no not at all not at all but yes they are a bible-believing believing church yeah okay so you know if you were to sit down with the people at the church and go uh it says nowhere in scripture not a single place it doesn't say a positive thing about debt it is wrong for us to use in a church that believes the bible to be teaching teenagers to go into debt and the proper way to do that when the bible doesn't teach that right what kind of reaction would you get um i would probably get a positive reaction but you know they chose the curriculum and you know it was a book written by whomever that we're working out of so i'm thinking about just actually leaving that whole portion out of the curriculum well how about we just we'll give you some curriculum for free okay yeah don't sidestep it robert i mean not from a communication standpoint not from a curriculum standpoint like this is a great opportunity for you to communicate exactly like dave said what the bible says about this and lead up in your organization about this topic of finances and you don't come in like a bulldozer pointing fingers placing blame you're saying hey here are my convictions here's what i've studied here's what i believe here's a curriculum that is proven that is biblically placed here's what it says in the bible and you have all these different angles that you're able to communicate and have a conversation you could lead to actual change in your church versus just leaving that lesson out yeah i agree i don't know if you're going to do it or not but i'll offer you curriculum for free to teach them out of our high school curriculum i'll have kelly pick up and get your contact information and if you want it and we'll teach that instead we'll give it to you and that'll solve the problem um but i think you need to sit down with leadership because leadership's not making a good call here it's not a matter of being mean about it it's just being kind and open and con conflict in a healthy organization is a good thing this is the ramsay show [Music] what makes our show unique is that we genuinely care about our listeners we're intentional about choosing the best advertisers to recommend blinds.com is no exception they offer high quality window treatments at unbelievable prices and they make it simple to shop blinds shades and interior shutters with easy online ordering free shipping and a guaranteed perfect fit go to blinds.com and take advantage of this week's special savings [Music] wow nearly 30 years ago we started this show on a tiny little bankrupt radio station here in nashville we talked about the same stuff that we talk about now we sound a little more country living on a budget getting out of debt building wealth about 15 years ago a guy walked into my office that was working for us and he was kind of one of these mad scientist type guys and he said um we need a podcast and i said what's a podcast and uh nobody had a podcast and he said you need a podcast i said we don't need a podcast i've never even heard of a podcast why do i need a podcast and we talked about it and laughed about it and um we figured out we could start one it wasn't that the heavy lifting that we could basically take this show and put it on a podcast the radio show that we were doing every day anyway what we call sawdust in the business or it's the stuff you're making anyway you might as well use it for lots repurpose it for lots of different things we also put it on siriusxm and we also put it a lot of other places over there youtube now that kind of stuff but uh what's interesting is the ramsay show is one of the top podcasts in the world if you didn't know consistently ranking in the top four five six podcasts on apple and uh we have become the fifth show in history uh about a week ago there's only four other shows that have done it before us and we're the fifth show in history to now have had one billion downloads of this podcast that's incredible that's mind-blowing we said when that slide went up this morning in our staff meeting i mean i i can't wrap my head around that our people's they couldn't cheer because they couldn't get their mouth closed yeah they were jaw-dropped yeah billion downloads of this podcast i that's a lot yeah that's mind-blowing you know only four other shows have done it and there's obviously the uh four of the five four or the five or six shows that are bigger than this show and do a great job as well obviously in this in the podcast world and uh what's interesting is over the years we've added up every year we add up um what the debt free screams uh have done and how much they have paid off and we've added that up now and now we've helped callers just on air do debt-free screams for over 500 million dollars and that's just the on-air debt free screams a half a billion that's just the ones we know about yeah and so what that means is it's at least 10x that and um pretty crazy pretty crazy so uh subscribe and follow the ramsay show podcast and uh apparently you won't be by yourself yeah on spotify apple google wherever you listen to podcasts uh check out all the podcasts in the ramsey network rachel cruz ken coleman anthony o'neil christy wright dr john deloney uh the new one the fine print that's coming out borrowed future the famous podcast on the student loan epic failure of the student loans system and uh pretty pretty stinking incredible so check it all out at daveramsey.com and anywhere great podcasts are you can find the ramsey network and of course this being the flagship show of that and um so again a billion downloads thank you guys out there so much you guys have blessed us telling your friends about it obviously and and listening yourself and i'm glad we've been able to help you and serve you uh to the level that to that level it's pretty pretty amazing to us that blows my mind i can't even calculate what that means a billion downloads a billion wow ah mike is in indianapolis hey mike welcome to the ramsey show how can christy and i help hi so this is kind of surreal talking to you on the phone okay glad you're here brother for my family um but i need to hear it from your lips okay um over the last year my wife and i have paid off all of our debt with the exception of the mortgage and eight thousand dollars in student loans okay since then um we have been able to put about eighteen thousand dollars in the bank just because i was off the covet for seven weeks and it scared us okay now we need some upgrades to our house including new windows we bought a 45 year old house windows are original to the home but i still have 8 000 in student loans do i write the check and get rid of them and then do the improvements to the house or can i go ahead and give my wife new windows well you know the answer you know they have you tell us the answer what's the answer mike tell us the biggest problem is that in the winter where we live is so rural we have propane heat and the windows leaked so bad that it cost us yeah how long have you lived there uh six years when i know by the way this is what month it's but it's still cold up here i know so on it's not it's not it's not going to be cold but another month right so this has nothing we're not even heading into weather not gonna work mike okay by the way by the way what are the windows cost yeah that's what i was like how much of the windows because how much have you got in savings eighteen thousand and the how the windows are gonna cost sixty five hundred okay so what is your emergency fund fully funded what should it be three to six months of expenses three to six months of expenses should be at three months we would be right around six thousand dollars we were very lean okay so eighteen minus 8 is 10 minus 6 for your emergency fund leaves four why can you not have the windows in by next fall i don't know what's your household income uh so it's just me we homeschool our kids what's your household income take take home is 43 000 but that also includes um i have a company car and a company pays for all of my vehicle maintenance gap everything so i don't have a travel budget for for our work very nice okay well so um but i mean let i think you ought to put in windows by the fall and i think you're gonna have an emergency i think you're gonna pay off your student loan today you keep your emergency fund aside and anything above your emergency fund will drag over to a different savings account and that's the window savings account you take on an extra job you have a garage sale you do whatever else to have the difference in and have your windows ready to purchase uh before it gets cold you know i think mike i think you i think coveted scared y'all a little bit i think you stocked up this cash of 18 000 i think you liked having the cushion of 18 000 and now the thought of spending some of the 18 000 on windows or your debt scares you because you like having the eighteen thousand and i just want you know you're gonna be okay you can pay off your loans you can get your windows you can refill your emergency fund you're gonna be okay it's gonna be lower than you're used to because you're used to having this eighteen thousand but you have it for that reason to use it for things you need and you need this you need to pay off your loans and you get those windows by fall and you're still going to have money for your emergency fund and you keep filling it up right alrighty thank you guys so much you can do it you can do it and she can do it you guys are gonna make it and and yeah you're not you know so you're gonna have one more month of coolish weather and you you're probably gonna survive it it's pretty amazing he made it for six years so i get like that about stuff in my house it's like i'm fine it's fine for five years and then i see it and i just can't unsee it and i become a one-track mind and you have to remind yourself i lived with this for this long we don't need this right now it's not it did not become an emergency yesterday because we decided oh my gosh the windows you've lived with it we're going into summer you'll be fine but sometimes you see something like oh man you just fixate on it my next book is going to be called the death of the drama queen because there's a drama queen that lives inside of every one of us it's just the guy right there's a drama queen inside of all of us we all do that yeah what you talked about there i've done it yeah i may have done it this week and it's just monday right yep but uh we all have this drama queen that lives inside of us it's like oh god the propane is just going out the window where is he we all do that crap right yes and and once we decide we fixate on it and there's something about this little child on the cereal aisle that wakes up and throws a fit i can't live with those windows another day and they live inside of us and this little child makes our decisions it's like and we just have this little hissy fit and that's a southern term sounds just like yankees don't even know what that means a hissy fit it's like a duck fit those are two two non-yankee terms right there but it just means your emotions got out of control because you're immature i'll help you with that okay oh my goodness this is the ramsey show [Music] [Music] [Applause] [Applause] [Music] thanks for joining us america we're glad you're here open phones triple eight eight two five five two two five christy wright ramsey personality is my co-host brandon is with us in dallas texas hey brandon how are you yes sir how are you better than i deserve what's up well i hope you haven't called anybody an idiot today because i want to give you the first crack at me we are starting this strong brandon i can't wait i've been listening i've been listening for a couple years that's not too bad but i should i think i should know the answer but i just don't i want to feel like i have like this unique situation but anyway i'm a uh i'm not a teacher anymore i used to be a teacher i taught for 12 years i'm self-employed for the last two years in these last two years i've been making good money but i haven't put anything away for retirement and when i look at you know what i've made as a teacher as far as retirement it's just a little under forty thousand dollars i'm not really sure how it how that works you know over over time but i figured after twelve years i would have a little bit more than that anyway um i bought some property uh i kept it for a year decided i wanted to move to be closer to where i work for my my new job so i'm in the process of selling that property worth about 90 000 and i have bought some property in the new city where i live and so my question is um you know now that i'm making decent money and really i'm in no you know i'd like to build a house uh in the future but i'm kind of okay renting for the time being i'm always worried about retirement so my question is with the money that i make from selling this property should i you know throw 125 000 into my retirement or should i put that 90 000 towards you know the the new property that i'm that i've just bought and you know try to go ahead and pay that off what are you making um about 150 pre-tax wow good for you nice jump thank you and it's just cell phone repair computer repair so good for you okay fairly predictable then that's good okay and that's that's one thing that i'm worried about though because i'm wondering you know how technology changes you know i'm that's what i'm kind of worried about nothing is forever it's okay right you're gonna you're gonna stay on top of it and you're gonna find something else to work on as whatever you're working on isn't there anymore we don't work on toasters anymore but we used to yes sir and you'll find something else to work on the guys that used to work on toasters work on cell phones now so it's you're gonna be fine you're you're the guy that's gonna you're gonna figure it out so good news is you're making good money so here's our rule of thumb we're going to work we work a thing called the baby steps and baby step one is a thousand dollars in the bank you've done that two is debt-free everything but your house you've done that right yes sir three is an emergency fund do you have an emergency fund of three to six months of expenses not counting 90 grand i do yes sir good for you okay then we're on baby steps four five and six four is fifteen percent of your income should be going into retirement you need to go to daveramsey.com click on smart vester get a smart vista pro sit down with them start loading a couple of roth are you married i am not but i do have children okay you need to start loading a roth ira how many employees do you have it's just me okay then i would look at doing a sep as well simplified employee pension plan and between that and a roth you can get 15 of your income going into retirement with the smartvestor pro automatically coming out your checking account every month and it'll just be on autopilot you want to think about it again and you're going to retire with a lot of money how old are you i'm 38 but can i tell you one more thing here sure i guess my fear overall is that i feel like you know i'm making more money than i've ever made but my fear is you know apple or samsung is going to make a phone that you can't repair or it doesn't need to be repaired and i may have to go back to teaching you're going to find something else to work on in the meantime you're going to say 15 of your income into retirement and baby step 5 is you're going to start putting something aside for your kids and baby step 6 is that you're going to get your home paid off in this case this land paid off so that formula tells us that you're going to put the 90 000 towards your land okay and you're going to set up these other accounts so you quit ringing your hands about the retirement here's the thing very few people become wealthy with single deposits the vast majority of wealthy people did it monthly over an extended period of time it was not a one-time hit so when you get to 70 years old and you have 10 million dollars you're not going to go it's because of that 90 grand you're going to go it's because of a steady life of investing and i had to pivot my business my business had to change and evolve because i mean back in art 21 they had these things called smart phones you know back before we had the hologram you know or what you know what i'm saying yes sir crap's gonna change right and you're gonna find something else to do and or a modification of what you're doing still within that field when i started this business the internet was not there there was no such thing and and the one thing i would add brandon is let that um let that change inspire you not intimidate you let it inspire you to stay sharp on your skills and learn new things and be excited about what you're going to know how to do in 5-10 years not be scared that the world's going to move on and leave you behind and you're not going to have a job because you're working on these old phones that no one uses anymore the toaster in this example don't don't look at it like that you can look at this and let it inspire you like hey i'm going to stay on the cutting edge of what's going on the first guy that works on the new brand new x or the brand new y yeah because you're working it because you're looking for that because you know that you know 10 years from now you're not working on a smartphone i'm a thousand yeah i'm a thousand percent sure of that well thank you for the advice i really appreciate it yeah that's how i would do it you that's exactly what i would do i think you i think your business is as stable as your ability to continue to innovate yep and that's everybody by the way it's not going to be the rug pulled out from underneath you most likely it's going to be you're going to learn as you go like you did to get to this point yeah very few businesses do you just walk unless you have a single thing with a single product now if you bet your life on apple oh you could get screwed yeah if you bet your life on google you could get screwed back your life on facebook you could get screwed so don't don't have a business model that allows yourself to be completely vulnerable to any one thing yeah out there any one vendor any one a singular process but um you know you got to have a diversified approach to it and a constant mind for innovation and the next thing but you got to have that in any business right oh yeah any business things are about the only thing you can count on is change marley is with us marley's in reddington are reading california hi marley how are you great how are you better than i deserve what's up well i am currently out on maternity leave and hey what'd you have yes i have a boy who's just turned three months and then we have a daughter who is about to turn two yay congratulations man you got a lot of noise in your house yeah no sleep they are both napping right now thankfully um but my question is my husband and i both um make fairly good money in our day jobs i'm a teacher i make a little over forty five thousand a year my husband makes a little over sixty thousand at his day job but he also owns uh two small businesses and so you make a little less than a hundred and thirty thousand dollars right now um he did just start a new business that could potentially make um he makes 130 or we do we we okay of that 45 is you correct okay so 85 is his i got you okay what's your question yes um my question is i would really like to stay home um good and we we've both kind of talked about it a lot right now we're debt-free um we're able to contribute about a thousand dollars a month extra towards our mortgage and like 40 of his income towards retirement but we won't be able to do those things if i stay home that's not what we teach we don't teach 40 towards retirement correct yeah we teach 15 towards retirement until your house is paid off if you want to stay home you're trading kids for money that's a good trade what do you think yeah you're in a position to be able to do it you want to do it do it make the decision to cut back on some things and make the decision for your budget to work and to stick to it but um you know set up 15 of his income going into retirement you'll be fine you're gonna be just fine but don't go in debt to do it [Music] [Applause] [Music] [Music] our scripture of the day isaiah 41 13 for i am the lord your god who takes hold of your right hand and says to you do not fear i will help you julie andrews the original mary poppins said perseverance is failing 19 times and succeeding the 20th so i grew up on herbie and mary poppins but i really really like the new one too oh i haven't seen it yeah i'm seeing it well it's not brand new i mean it was just a couple years ago yeah yeah who was it kelly emily blunt yeah she did a great job yeah um i'm not i'm not cool enough to keep up with who's in hollywood but um but she did that was and uh the guy that played uh played dick van dyke's role as well was yeah okay he was fabulous and i'm not even gonna try to do that but anyway yeah he did a good job too so yeah it was fun that's fine that's a great great old story open phones here at triple eight eight two five five two two five stafford is with us in charleston south carolina hi stafford how are you hey doing great dave i appreciate you taking my call sure how can we help um yeah so me and my fiance are getting married in july which we're very excited about yay since thank you since i was a kid my parents followed your plan and passed all those values to me and so i appreciate that um because i've been debt free since you know out of school and um been really just trying to stay on that one of my life goals is to be consumer debt-free great um and so we're getting married but she's got some credit card debt and some student loans and so it's not a matter of if to pay off the credit cards and the in the student loans but how to go about doing it um and so we've got some cash saved up that we have to pay for the wedding um as well as we want to do some home renovations um but the question was is it worth trying to settle on some of this credit card debt by calling and and settling directly with the credit cards uh she's not behind she changed her minimum payment but she don't know she doesn't make enough stuff no they won't they're not going to settle if you're not behind they're not going to settle the only reason they settle is if if you're in default and they and you're going to have to screw up her credit to do that so women i'm sorry i drove right by something you're going to pay for the wedding how much money do you have i've got about 50 000 in savings right now and how much you spend on the wedding uh we're paying a portion of it so we're probably putting 15 towards the wedding which leaves 35 and she has 37. right so when you come home from the honeymoon you write a check and pay off the debt 104. no no no home renovations i heard you sneak that through there he did he just and then just to go just to drive by she's threatened to push the wedding back unless you get some stuff knocked out so i'm a single guy living at a house from about so for a while and so yeah well i mean we're not talking about putting it off for very long you're going to have zero debt and you're going to be on a budget together and you have your emergency fund in place you'll be able to save up for home renovations as your next goal guys so you're saying don't try to negotiate just try to just pay it off and move on well you're they're not going to negotiate does she want to pay off this debt yes okay because this is a this is a we need to be on the same page with values and how we handle money in addition to paying off the debt because if you pay off the debt and she's still excited about using credit cards there's you gotta run into this problem again no absolutely she's ready to get rid of it she just she works for a ministry and isn't making enough stuff okay so what do you make payments so i make a hundred a year what is 500 a week in a title so she's doing about 28 a year okay all right and what's the how much in whose home is renovating who are we moving who's your house her house what it's my house and what does it need how much you need to spend on it uh probably about thirty thousand okay all right and so with a hundred and something thousand dollar household income and no debt in the world and you knowing how to do it be on a budget and her learning how to be on a budget and we both have one goal and that's do some of these renovations you probably can do them in a few stages you could start almost immediately on the first stage right and debt-free then you're you're making those renovations debt-free yeah i don't think the credit card company is going to settle with you when you're not behind i got you and i don't think anybody else is either and i wouldn't recommend you put her behind merely for the purposes of settling um but i think it's real important that the two of you lay out a detailed see all i'm doing is i'm not saying don't do something i'm saying doing in a very specific order that gives you the least that gives you the most money and the least risk right that's why that's the thing yeah because i think we're on the same page in terms of is wanting to get rid of it it's not in i it's a good thing i don't know about credit card settlement i guess it's a good thing i don't know that but yeah i just was doing information well you're trying to get everything done at once by paying less for the debt so that you can go and start the home renovations which is not a bad question to ask it's a reasonable question to ask but here's the thing the reason anyone like think about if someone owed you money the only reason you would take less than what was owed is because you don't think you're gonna get your money and you don't think you're gonna get your money because they haven't been paying and so when you you know a lot of these companies that that for instance they call themselves debt consolidation companies they're not all they do is put you on a payment plan where you start paying them instead of the credit card companies the credit cards get behind and then they settle on after they've destroyed your credit and put you into default and so i wouldn't set out to destroy i don't set out to build credit but i wouldn't set out to destroy it either not when you have the ability to pay a bill that is legitimate i would just pay the bill and then i do my home repairs as my second order of business which by the way your home repairs are probably all going to be done within 12 months and a whole bunch of them are going to be done by christmas yeah it's not never it's just not right now it's in this specific order yeah and that that's a there's a reason for that so christy i've done that exercise a bazillion times with people that i'm coaching on the air here or otherwise but sharon and i had to do it you know i mean she's driving one of these ugly blue thousand years ago two-tone blue astro van you remember those yes nasty nasty butt little van it was completely worn out i mean there was stuff growing in the thing we had raised children animals were making homes in it yeah we raised children in this van and she's like we and we you know where the business was starting to grow and we had a little bit of money and she's like we need to get a suburban and i'm like no i've got this thing at the office we need to do this thing at the business you know and and we got in this big argument yeah are we going to do this thing at the business first are we going to invest in the business are we going to buy stupid suburban and you know because i i'm like no i mean we're going to grow the business there's no question no we're getting a suburban there's no question and finally between the two of us we're stupid but we finally figured it out we could do both yeah it was only a matter of which one went first and guess what went first we started with a suburban and then we the next batch of money you know that came through we used to grow the stuff at the office here and uh but you know it's not no it's just which is first yeah it's not like no you can't do the stuff the business no you're never gonna get a suburban you just have to decide the proper or it's not like no we're not gonna do renovations or no we're not going to pay off the debt right it's just a matter of the laying out that order and that order indicates what you value and that's why you asked that question about what are what our values are yeah and i think also whenever you're seeing two people come together they're getting married they're so excited one has had brought debt into the marriage one has been financially responsible has no debt you've got to have some of these conversations because habits have to change it's it's fine you know it's fine if you didn't have it all together before you got married but you need to get on the same page so that as a married couple you're making those decisions together about debt about savings about where and how you spend and sometimes you have to wrestle it out like that example matt and i have had plenty of those conversations of which comes first and which is more important and everybody speaks into it but the only that's why i wanted to ask that so i thought okay if this is the past that's totally fine we'll make sure it's not going to be the future spending habits whenever you're talking about credit cards yeah we get into we have to get in lockstep uh especially a newlywed couple because you're gonna it's the number one thing couples fight about and it's one of the data points we find with the millionaires is that they not always but the vast majority of them i forget the number their spouses were on board with them they're working together they weren't one of them pulling the other one along yep yep and uh and they were you know two adults yep making decisions about their future and he's gonna have a lot better time and she is as well making those home renovations being debt-free it's gonna be a lot more fun to pick stuff out and make decisions yeah yeah you don't not with credit card debt hovering over your shoulder yeah that's a good point that puts us out of the dave ramsey show in the books 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 have a friend or family member that needs a daily dose of ramsay 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 you

Channel: The Ramsey Show - Full Episodes

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Id: nXtDEarL0Fs

Length: 121min 0sec (7260 seconds)

Published: Mon Mar 29 2021