We're Paying Off Our House Tomorrow, What Now?

[Music] gary's in charleston south carolina hi gary welcome to the ramsey show hi dave thanks for taking my call sure what's up uh well my wife christine and i are here um and uh we've we sold our boat that was our paid off boat and our paid off truck in this market we got top dollar and we're using that plus a little bit of savings uh to pay off the house tomorrow yay way to go yeah thanks so uh you know we've you know we've kind of worked hard and uh you know increased our income to where it's at today and paid off all the bills and congratulations that people anyway thank you but uh but yeah we started watching your show and now we've you know consolidated all our bills together uh you know which made us waste less money but now we're at that point uh we're hitting baby step seven um and next steps and yeah we just we have more money than we know to do with what do you mean what's your household income household income this year should be right at 360. wow how old are you guys i'm 38 she's 40. yay and what's the house worth um 325 to 350. excellent how much is in your retirement accounts your nest egg selective collectively around 360. okay all right cool we but we maxed them out we maxed them out uh each year she she started sooner than i did and i started recently well you guys are doing a great job i mean in about 20 seconds you're gonna be millionaires and you're on your way well done what can i answer for you uh well yeah we we we have some money in stocks have about you know six figures in stock still and now we're about to have a lot of disposable income and while i haven't been wrong on my individual stock that i've been investing in uh i know that you teach to diversify and i think that's a you know a very wise move and i'd like to go that way moving forward okay um so uh just some of your suggestions of now we're gonna have a disposable income anywhere between seven seventy five hundred and nine thousand a month so what do we do with it excellent well such choices to have yeah such a problem [Laughter] well it goes back to philosophically or theologically there's only three things you can do with money uh you can be generous with it and you should so label some of it for generosity you can invest it and you should so label some of it for that and you can enjoy it and you should so label some of it for that and so there are some items out there in your future that two years ago would have been immature and silly but two years from today you'll be able to purchase that item and pay cash for it and it will fit right in and you won't have to worry about it it's a non-issue because it's as small enough as a percentage of your wonderful world that you'll be able to do that thing go on that trip buy that classic car buy that piece of jewelry that piece of art i don't know something that you enjoy then you're going to invest now i only invest in two things i invest in real estate that i pay cash for and i invest in good growth stock mutual funds spreading across the four types i'm a little heavier in real estate than i am in mutual funds for two reasons one is i bought about um about several about about 100 million dollars worth back in 2008 and i bought it at about 10 cents on the dollar or about 50 million worth actually so it ended up shooting way up because i bought it way at the bottom i hadn't been able to buy anything like that since but um so i love real estate but i'm heavy in real estate for that reason because my returns have been better there because i bought at the worst time in the last 40 years probably and so which is to my advantage so anyway buying real estate that i pay cash for and then investing in mutual funds and whichever one you're more comfortable with some people don't like mutual funds so they're light in those some don't want to deal with tenants and the hassles of owning real estate and so they don't have any or hardly any in real estate you know if you have something else you want to play in that's fine if you want to buy a little bit of single stocks i don't suggest you have more than 10 percent of your net worth in your case that'd be a you know less than a hundred thousand dollars in single stocks because it's just too risky but if you really have a thing for it and you want to put that much in there and play with it you'll be okay you're not going to mess it up doing that because you've got a small enough amount in there that even if you lost the whole thing which you would never do that but even if you lost the whole thing you still would be worth over a million dollars in just a few minutes here so all of that to say congratulations the trick is now take that disposable income and just label it x for fun y for investing in z for generosity um then you're going to be very intentional about your investing very intentional about your fun and very intentional about your generosity within that set amount of dollars and so that allows sharon and i to do some really fun things uh with the amount of wealth that we've built and we don't even have to uh emotionally sweat it oh are we are we bad christians if we buy that no we've been very intentional good stewards and it's a small percentage of our world and then when we get ready to do some generosity we're like oh if we messed up our whole estate plan because we gave too much away no we're not being crazy we're being very wise and yet outrageously generous but when that money's already earmarked to give away and you set it aside it's interesting your emotions have already given it away you just haven't transferred the bank account yet and so go ahead and do some of that when we move our money into our family foundation it's already given away technically speaking it's already given away in that case because it's a foundation but also emotionally we're done with it once we earmark that money going that direction and it just gives you a lot of peace that all three things are happening the way they should fun generosity and investing to create more fun and more generosity

Channel: Ramsey Everyday Millionaires

Views: 337,411

Keywords:

Id: i8VIWl7rs0o

Length: 6min 42sec (402 seconds)

Published: Wed Jun 30 2021