You Have To Be Intentional With Your Money!

this is the ramsay show [Music] you can be intentional about your character you can have money and a career you are the hero in your story [Music] live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios it's the ramsey show where debt is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice dr john deloney ramsey personality best-selling author and host of an explodingly popular podcast i got to come up with a better phrase than that but but it is healthy explodingly is explodingly popular it's uh it's it's yeah there's a lot well anyway but dave you've been with us for 30 years there's a lot of people listening to it in a very short period of time and i i'm proud of it and i uh i'm proud of you and i love that it's popular because what you're putting out there the material the answers to questions in people's lives is absolutely valuable and it is uh it's unique and it's fresh and refreshing and so i'm glad that i'm glad the curve on the listenership is through the roof well i appreciate that plus i just like being associated with a big hit well and i think 30 years you've been making up words so why start now stop now right we're going to go with exploding this isn't the season to fix your grammar dave so i say explodingly let's do it man i mean it's uh it's a little late in life because um number one i'm beyond help number two i just really don't care that's right that's the the du that one does it right there so open phones if you want to talk to this couple of clowns open triple eight eight two five five two two five we'll talk about your life and your money uh the call is free and some say the advice is worth exactly what you pay for it laura is with us in los angeles hey laura welcome to the ramsey show hi thank you for taking my call sure what's up um i'm a little nervous i'm going to try to calm down you'll be fine we've never lost a patient you'll make it okay my husband and i are at um total odds kind of right now what to do about a decision and so um we're calling you so we're new listeners we've only been listening for a couple months but we've listened a lot and so basically we're 50 and 60 years old all of our money is in uh real estate we've done well in real estate we have about six thousand six million dollars in a paid off real estate it's all rentals i hate it when that happens and we probably made some stupid decisions but we were lucky and it worked out i think you've made some good decisions somewhere okay so anyway where we're at right now is everything is owned outright except for our personal residence and a vacation home in palm springs that's very successful airbnb um our personal residence is worth like 1.6 million and we owe 350 000 on it and our rental home is worth about a million and we also owe 350 000 on it my husband wants us to sell a paid off rental that's about worth about 350 000. they'll be on free and clear it brings in about 2 000 a month and it's really it's a condo it's easy it's you know it's just the money just comes in he wants to sell that to pay off our palm springs airbnb just so he just feels like 260. now he just wants to not have that debt you know he wants to just have a home mortgage and he wants to really attack the home mortgage and this whole debt free idea is brand new to us you know so um and i want to keep it because we have no retirement other than renters we have no stocks we have no i have six million dollars in real estate we do no longer a month no whining allowed this condo is not going to break your retirement bank right sorry uh i mean it's okay why so why did he pick that condo to sell out of all the other properties um he wants to sell something and i think he well also the our tenant just moved out because vacant which california rent laws would make it easier you know to sell a vacant unit and so it's just sitting there and rented you know it's just and we're at a stalemate like kind of locking the heads and i said well why don't we take rent it take the 2000 and since we don't need that to live on it just attack the palm springs mortgage you know and then we could just and if they're already on 15-year fixed that we're already only 13 years old what is your household income it's all off of rental properties is your income all off of rental basically yeah so what did you take in in cash that you put in your pocket that you paid taxes on last year 200 000 on 6 million well yeah well it was like 340 is what it brings in but then we have we write off a lot yeah i'm talking about not i'm not talking about uh depreciation but i mean you have actual expenses that eat your cash i would hope you're making 340 after expenses on six million dollar portfolio uh well maybe it's just because real estate's so expensive like our home is in that you know what i mean cash you should have 340 000 income net of expenses before depreciation on six million dollar portfolio anyway that's still low but you ought to at least have that yeah well we don't you don't so what is the cash after expenses before depreciation that you guys have coming in to work with i'm not sure okay well that'd be a good number to have okay because that's called your income right that's what you have to work with because if i wanted to answer the question how fast can i pay off 700 000 worth of real estate debt i would need to know what my income is to do that with i will tell you 24 000 on a property that's worth 350 000 as your gross income meaning you're netting somewhere around 17 000 really sucks the roi on that condo is pity full yeah it's bad i don't care if it's low if it's hassle not much hassle you're not you know you're not making a you're making what four percent on your money that sucks so i thought i was hoping maybe you're gonna tell me he picked it out because the income is horrible on it but um i know it's just that it's empty yeah right now okay yeah well i i'm as you know from listening for just a few weeks i'm gonna lead you to be debt-free as fast as i can so the answer to your question is gonna be you have to go back and do some homework and you guys have to keep talking because you need to get to the bottom of this so number one we need these properties to be producing and a cash on cash rate of return that is substantial okay number two once that's our income once we know what our income is number two how fast if we keep the condo can we get these seven hundred fifty thousand dollars worth of debt cleared how many years is that gonna take yeah how many years is that to take five years six years seven years he's 60 years old he doesn't want to leave you with debt and that's that's the goal okay he's trying to take care of you so uh then then uh if you if it's going to take you 15 years because you're really making 200 000 on this 6 million because your your real estate sucks um if that's really all you're making on it and it's going to take you 10 or 15 years to clear this yeah you need to sell the condo because you need to clear this debt as a part of preparing for him to not be there or if the golden years whatever we want to call these these next this next decade or two if you're if however you're making three or four hundred thousand dollars that you have cash on at your fingertips which i suspect you should be it i mean unless these properties are just not well run uh you should be well yeah okay i feel like because everything's so expensive it's not anything to do with it right okay yeah if if a property is worth a million dollars it should rent for a price the rental price should reflect the value of the property right if you've raised the prices as the values have gone up because rents go up as values go up and so anyway i own several hundred thousand dollars several hundred million dollars of real estate i love real estate so it's my you're my sandbox right now kiddo so you either need to clear the debt with your income or you need to clear the debt by selling the condo in the next five years now you run the numbers out and decide which one's the best 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] well speaking of real estate if you've ever made a dumb decision with zeros on the end you know you didn't do your research me too most people make choices based on feelings or opinions especially when buying a house but when it comes to the real estate market feelings aren't your friend facts are well john says that about a lot of things so check your facts find out what you can actually afford research what's trending in home prices talk to a reputable real estate agent in your area never buy a house again without fax text the word house to 33 789 to get an agent who will help you make smart decisions text house two three three seven eight nine sarah is with us in dallas texas hi sarah welcome to the ramsey show hello thank you so much for having me sure how can i help all right well um my husband and i are in baby step two and uh since december of 2019 we've paid off 58 thousand dollars all right and that we only have about three here we're very proud of that but uh we are on the second half of our debt now and that's 37 000 left in student loans um but due to increased costs of having a second child over last year and taking a job with a decreased salary our shovel is substantially smaller compared to what it used to be so i'm trying to think of ways brainstorm ways to be gazelle intense in a new situation and i had this crazy idea and my husband was not super thrilled with it and actually asked me if i could call you to talk about it what if we paid off our paid or what if we sold our paid off cars if we did that it would be a big step but it would wipe out this 37k immediately and we could then focus on all of the other things that we need to do and then you have a forty thousand dollars back into a car we have two twenty three thousand dollar cars oh you'd sell both your cars yes that's why it's a big step what would you and then you get your two beaters huh yes maybe not beaters and what is your house what is your household income 140 000 a year and why can you not pay off 37 making 140 000 um so we bring home 8 800 a month which is a lot and we're very fortunate um 5 thousand of it goes between daycare and our mortgage they're about the same that's over five thousand dollars uh we spend a thousand on groceries diapers household things your daycare is 60 000 a year uh yeah but well between the two kids uh we pay twenty two hundred dollars a month so not fifty thousand a year that's that's not five thousand oh five mortgage plans i'm sorry it's between day care and mortgage oh yeah okay yeah 140 i don't know why mortgage and daycare are on the same list but anyway we'll put them there so 140 minus 60 isn't that isn't that 80. 140 minus 60 is 80. why can you not pay off thirty seven thousand dollars again so i can pay off thirty seven thousand dollars i have a thousand based on our no our debt snowball i have a thousand dollars a month going towards that i don't think your budget is very sacrificial and that's true there are other things that we could we could yeah like you're still doing a whole bunch of crap that you don't need to be doing okay well then we'll take a look at that and make it a little bit i mean help me with this because i'm not just making this up i mean i just took 140 and i took out the mortgage and i took out the daycare which were your two primary things you're worried about you don't have any payments except except a student loan payment and we took care of daycare and we took care of the mortgage now we got to buy lights water and food and you can't find 37 thousand dollars that's just weird um okay well looking looking at our budget and the growth that we come home with like i said it's 800 yeah that's 120 000. that's 120 absolutely minus well and that's our growth right that's what we take home after taxes our net i'm sorry um and then we take uh and then it's about a thousand dollars on food diapers other household items a thousand on student loans about seven hundred dollars in bills and at the end of the month we may have an extra five hundred dollars left which will go towards um towards our specificity you did not get down to five hundred dollars your budgets you're still not doing it i'm sorry i'm the only thing i'm good at is math and you still did not spend all that money so you've got some work to do kiddo sharpen z pencil sharpen the pencil uh so one car maybe but i don't think so you're putting a thousand dollars a month towards 37 that's 12 of the 37. so all you need is 24 000 all you got to do is find 24 000 out of 140 120 take home pay for one year and to do it in one year then if you wanna do it in two years all you need is twelve thousand dollars i'll do it in one year just get it done with it i i really think you can do it i really think that there's some i i i think there's some whining in this budget i really do yeah it does it sounds like i want to be comfortable let me tell you i'll go further i don't think you're doing the whole budget because you're you're doing this from your head that's why you've got daycare and diapers broken out of separate line items they're you know diapers don't go in a separate line item they're not that big a line item you're you're trying to crack crank this through in your brain you need to sit down and do a written detailed line by line budget with every dollar every dot get on the every dollar app with your husband the two of you give every dollar a name and you're gonna see where why i'm why i'm raising up on you you're gonna see there's money left here and you can knock this out no you don't need to sell your cars you need to tighten your budget and lower your stinking lifestyle and i actually think that when she first called dave i was gonna say yeah sell your cars and be done with this thing but i think the i think the exercise oh it's right it's much better than selling the cars yeah this is gonna be a al i hate to use this where's me a spiritual exercise for his crew to get down and and see what you're made of yeah yeah this is going to force you to do the last 10 percent of truth yes which is the hardest is the detailed budget because you can i mean you can do big piece budgets in your head and when you make 140 grand you just feel like you got so much wiggle room right and you should have and it's frustrating when you get to the end of the month and there's no money money left but you haven't detailed it out i'm i might be wrong but i'm not i might be wrong but i'm not been doing this too long so that that's my opinion you keep digging on it kiddo if we can help you we're here to help you but part of the time we help you by um by raising up on you because we love you we want you to win all right up next is going to be armin armin's in los angeles hey armin how are you good how are you guys better than i deserve what's up all right so before i get into my question i just want to give some context on my situation right now so i'm 17 years old i'm on my last semester at a community college and i'm about to transfer to a uc school but i'm faced with two different um conflicting opinions so i'm faced with the dilemma where if i transfer to uc irvine i would need to rent out a private house through uc irvine housing and on the other hand if i go to ucla i'll need to get a car um but it's that question of should i lease or should i buy because my surroundings of family and friends are they're they're both raising pretty good arguments for leasing and buying so i i don't know what a car oh okay well the only people that promote leasing a car are broke people okay i mean the wealthy people don't lose cars i mean a few of them do but by and large let me tell you we did a study of 10 000 millionaires the largest study of millionaires ever done none of them not a single one of the 10 000 said you know i became a millionaire because i i really leveraged the use of that car by borrowing on it not one i mean it wasn't a small percentage it was freaking zero armin now this is not your broke friend or family member who can make an intellectual argument this are real millionaires they don't borrow money on cars dude and when you ask them what the largest mistake they ever made in their working lifetime they usually say i borrowed to buy brand new cars i bought a new car i bought a brand new car when i was 26 and i was so stupid when i was 26 and now i'm 46 and i'm i would have been a millionaire four years sooner if i hadn't bought that stupid buck car on payments that i couldn't afford to buy so to answer your question norman i drove a 1988 20 tercel easy hatchback it cost a thousand bucks i bought it from some lady at my church whose husband had passed away and that got me through my undergraduate it got me through my first year of my professional job and that's still driving somewhere right yep buy the cheapest beater car you can get to get to and from you're a 18 year old kid don't take financial advice from broke people son this is the ramsey show [Music] [Applause] [Music] [Music] so sean and char are in denver and it says on my screen that you guys are debt free congratulations thank you how much have you paid off we paid off a hundred thousand dollars in 27 months wow good for you and your range of income during that time is actually pretty steady we are about a hundred thousand dollars a year okay so kind of like the lady i was talking to a minute ago making 140 to pay off 37 they paid off 127 months making 100. exactly so i have to hear the story now because it seems like maybe i know what i'm doing okay so allegedly what kind of debt was the hundred thousand our debt was um the irs heloc like credit cards auto and medical bills wow i mean you had so you had some nasty piranha in that pond yes yeah the tax man was uh not real happy with us yeah how much of the 100k was was was the kgb i mean the irs it was about 20 000 was to the irs how did you end up owing that much in taxes uh well i i went a few years without uh filing [Laughter] i'm gonna go with the my bad on that one yeah yeah i'm just thinking that yeah i got it oops yeah so uh what happened 27 months ago what was your wake-up call two and a half years ago uh well so sharon and i have both been through one marriage already so when we met we decided that we were gonna base our relationship in uh god's word and uh try and live our relationship by his will and uh as as we were moving through and we decided to get married and we were planning our wedding we were kind of noticing how much it was going to cost us and uh you know as part of being living in god's will was to be good stewards of his blessings so you know and uh being one of the blessings that he's given us is you know our financial uh money and how much we make and you know so we're were talking about it and decided that you know we wanted to cash roll our our wedding and we wanted to get out of debt and you know start our our life together on on the right foot so that's kind of how we decided to do that and i'd heard of uh you from years ago you're kind of a household name around our our family and um so we got your book and we were reading it to each other uh before bed for battle how romantic right yeah right well i gotta admit i put sure to sleep a couple times that would be me you were reading it but i would be the one but that's great i love it so a hundred thousand dollar income what do you guys do for a living um i um own my own hair salon business in boulder colorado yeah and i am uh i i design medical equipment very good okay so you've been married about uh two and a half years three years uh coming up on two years in may okay so you started the process a little bit before marriage then yes okay excellent excellent well congratulations you guys who had the first conversation with who actually sat down and said hey what if we did this because i take that first conversation especially for a new couple takes a lot of courage a lot of vulnerability who who's the first one to have that conversation that totally is on sean's shoulders so he looked at his wife and his soon-to-be wife and said what if we just scaled back and cash flowed this and what if we stopped spending so much money and you were all in all in yeah oh that's cool yeah so you were feeling the stress in the pinch too then well yeah we i mean i came into our relationship with you know a good sixty thousand dollars of that hundred thousand dollars that we had and i just didn't you know when you have that much debt you don't i don't know like i didn't know where i was going and i was living paycheck to paycheck and i didn't want to be like that that was my typical my family's a typical mo and that's i didn't want to do that i wanted to change that you just think that walking through life with those ankle weights on and not sleeping and not knowing how we're gonna eat the last couple days that's just normal right yeah get used to it yeah yeah how's it feel now that you're out oh my gosh it's amazing uh and honestly i as soon as we started doing this and we were knocking bills out left and right that's when my i started to feel like i was free it was great you don't even have to be there you just got to know that you can get there yeah yeah we saw it coming it was great so what did you learn about yourself and about each other through this 27 months well we were we were just talking about that this morning and um you know one of the things that we learned was you know we we don't always speak the same language when we're talking about our finances and budget and you know just life in general so sitting down and forcing ourselves to learn how the each other communicates and you know how to how to listen and speak each other's language was really nice and so give me an example of when one of you was speaking french and the other one speaking russian um it you know it usually came up when we were doing our budget and char would be trying to make sense of the numbers in in her head and i'm trying to make sense of the numbers in my head and you know i'm looking at it as you know an engineer and she's looking at it as a hair stylist so those two things didn't always uh line up okay so the nerd and the free spirit for one thing right yeah yeah absolutely or the spreadsheet lover in the room the guy the guy reading a financial book to his his new wife in bed and the artist right and i'm falling asleep that's right yeah i am the artist right yeah yeah this is great i love it guys you guys are amazing i'm so proud of you very very well done what do you tell people the key to getting out of that is um well i think that the key or our secret anyways is that it has to be uh you have to get over the heart problem instead of it having a math problem so when you change your heart the math will do itself oh yeah profound very well done good good job you guys well we've got a copy of rachel cruz's latest new york times bestseller know yourself know your money and it'll help with the russian and the french yes that's what it's for what would you tell to a new couple who's about to get married or just got married that how this benefited you two because i want you to give hope to folks who are thinking i'm not gonna have this conversation it's definitely a hard conversation but i think in the long run i mean it's definitely well worth it i mean it's just to have the debt off of your shoulders and not have to worry about anything like when also the when the pandemic hit because of my career you know we were closed for two months out here and we didn't have to it didn't hurt us as bad as most people would because we were on a budget and um we still live on a budget even though we're debt-free yeah me too i i just i tell everybody that they should do it whether you're married or you're single because just the financial freedom and that weight lifted off of your shoulders is huge i can't even explain it like and i'll go one step deeper and suggest that you all two have worked together on a hard thing they got behind the thing right you got behind the the fear and you guys worked through something hard together and now you all know hand in hand y'all can conquer anything it's not a matter of if but when life throws its next thing at you y'all two both know we can do this because we've done yeah we're gonna take over the world next there you go man i love it man well it needs a good taking over so would you please get in business hurry up sean hey pay your taxes on the way too brother yeah keep your taxes paid that way the world won't kick back but yeah i love it congratulations all right sean and char in denver colorado a hundred thousand dollars paid off as newlyweds in 27 months making a hundred grand count it down let's hear a debt-free scream three two one where's it free [Applause] now let's just round that 27 months up to 36 months and call 100 000 33 000 a year making a hundred thousand i will say it for you america dave was right he's always right it's frustrating i sit next to him and he signs my paychecks [Music] [Music] dr john dolone ramsey personality is my co-host today julie is in denver hey julie welcome to the ramsey show how can we help hi thank you for taking my call sure what's up um i have kind of a funny situation i have a brother-in-law who just offered to take us on a trip uh this summer we're on baby step two and this year already has uh we've had some extra bills come up with some medical stuff we think it's strange that they've offered to pay for a trip for us and we don't know how to say no we don't want to go because we don't ever want to pay them back even though it's a gift why is it strange well they have not talked to us for about six years and then in the back excuse me about a year ago they've had a change of heart and want to reconnect that's nice yeah it's nice it's nice it's your your husband's brother brother yes so is there something about this gift you feel like is gonna have strings attached to it yes um there my husband and his brother had a fight over a four-wheeler um about six years ago and it's just now being repaired whoa like we're being invited back to family gatherings and stuff oh so you got ruled out of mom and dad's and everybody's yes but you know that was bigger than a four-wheeler right i think so yeah i have an in-laws a thousand percent bigger than a four-wheeler yeah that's probably some 30-year-old stuff that was proxy ward with the four-wheeler i think so it was a joint owned you know father and son's four-wheeler yeah and it got ugly or you don't ex-communicate family members over a toy right there's usually other stuff there uh yeah there's big stuff but it's strange you know just the other day they offered to bring us on this trip and we're on baby step two and we are just not there to go on vacation but it's strange we don't know how to answer because if we say no it's a money thing and then they say we're paying for it how much of this is um your pride i don't know well it would be kind of hard to be like thanks for the airfare and hotel and why is that hard i just don't want it to blow up down the line and be like well we took you here i don't know i don't i didn't think about that dr john actually so there's partners i i gotta i'm gonna defend her a minute okay i i'm i don't think it's pride i think she's uh gun shy it feels like you're you're projecting a future you're well i mean a future these people will blow you up over a four-wheeler why wouldn't they blow you up over yeah come back later and circle around hit you in the back of the head over a paid-for trip that's right yeah but i also if somebody says man what an idiot brother i was for losing out on six years of relationship hey i want to start spending some intentional time together and then all of a sudden i walk up and y'all are in baby step two of this weird cult that's happening off in nashville and it's like hey cool come with us we're gonna so i in the only reason i'm asking i'm trying to be provocative with you how much of this is you saying i'm too fancy i'm too i've got too much pride to take someone else's money versus no man if we do this this is gonna end poorly for us because i think to answer your question i think it's relatively easy you say hey you know what we're not going to do vacations this year we're going to stay in if y'all want to come visit us that'd be awesome but we're not going to vacations this year next year the year after we can't wait and then your boundaries are your boundaries and if they want to throw a temper tantrum over that then you've got your question answered for you right okay you knew they're using this as something else otherwise if they say great we can't wait so we can do this again just so you know money's never a thing with us but we're coming we want you with us and we're we're going to make up for lost time then you know hey there's something bigger at play here right but trust your gut right i don't know what you think dave i guess i don't have a i don't have a problem either way with it yeah john's point yeah that uh are hovering around in his point i i think is um if this is truly an olive branch don't saw it off that's what i'm feeling and that's why i don't know how to read well no i'm saying there's a way to uh to you know push it to the side gently but you don't have to saw it off and so number one you don't need to respond your husband does this is about him right and he responds and says hey bro man i really do want to reconnect and this is this means a lot to me that you would offer to pay for this and it's so kind and generous of you we are committed to this plan and i know that might not be something you understand but um we're going to stay home but it's not because of anything except we're working this stuff and i know you're paying for everything but it's just it doesn't work for us this year if you all want to come down hang out get your hotel in the area you know we'll go to dinner we'll all go out and throw frisbees in the backyard we'll do some stuff like that and then maybe another year we'll go on vacation together but i just can't do it this year and thank you so much for reaching out and if if he then bows up and goes well you won't take my gift then you go well see there it was okay like john john said but it's it's a way to test the waters without smacking the possible reconciliation in the face or without ending up four days into a seven-day cruise really like oh no what did we do no we can't get away yeah we're stuck on a boat now i'm stuck in here with cousin eddie yes yeah okay that's fair that's fair yeah and and my husband will talk to him i won't respond for him uh i just we talked about it the other day and we're like we don't know how to save it yeah well it's it's it's it you know it it is way over there on the edge of awkward yeah but hey julie i also i also want to put this out in the water it is easy from you and your husband's perspective to look at your brother in law and say man i can't believe he burned us for six years over a four-wheeler but your husband's got to own some of that too it wasn't a four-wheeler there's something else going on the tools to have this conversation well so he's gonna know i gotta be gentle i gotta be appreciative i wanna i wanna always go into this thing assuming it's an olive branch i love that analogy dave i'm not gonna cut it i'm not gonna saw it off i'm just gonna move it aside and say not this year but soon but soon yeah gently yeah yeah but and then that's having you having strength and and boundaries and you and it also gives you a little bit of a a little test here because i'd rather do frisbees in the backyard than in cancun for a week yep you know in this weirdness so let's just have a little where there's a little better escape hatch and everybody's not heavily it's heavily committed and you know you that kind of stuff so uh yeah i would want we want you to rebuild a relationship if it's possible absolutely and it doesn't have to start on a paid for vacation in spite of your hurt and in spite of your scars yep yeah john is in tampa florida hey john welcome to the ramsey show how can we help thank you dave and john for taking my call my wife and i are in baby step seven we have paid for rental property that i'm trying to figure out what our roi is on that to determine whether they are a good investment to keep long term we don't we've owned it for about 10 years is it a residential house uh it's short-term rental actually so they're vacation rentals okay um well usually those have much higher management fees management company takes a big bigger chunk right yeah we actually manage it ourselves oh okay um and you so you're like running a vrbo type thing correct okay yeah the benefit is is that you get high rents when you get them but then there's the off season correct and we've had a significant increase in property values over the time too which has been beneficial but a significant increase in turnover of the tenants i mean you're this week by week it's not yeah okay correct it's a pain in the butt i'm just trying to figure out okay on residential traditional residential uh i i own a bunch of houses and our portfolio averages a little north of eight percent cash on cash okay meaning that the value of the property it we generate eight percent of the value after expenses without depreciation not counting depreciation not counting increase in value cash on cash also the actual cash you paid for it no the actual cash value of the property it it's uh it would be cash on cash if it's cash you're correct but we do it on value we want to see our rents coming up to match the values to keep us around that eight percent mark after expenses now that's a traditional rental house it rents for a year not by the week by the week you should be making more because you got a lot more labor and you got to account for the gap of no rent and you got those get you know you got these gaping holes of off season and all that kind of stuff so yeah you know if you're not getting north of that you should probably rent it straight up instead of vacation rentage because you got to paint you're dealing as a pain in the butt this is the ramsay [Music] show hey guys this is james senior producer for the ramsay show did you know over 18 million people listen to the ramsay show every week and a lot of those people listen on one of our 600 plus radio stations across the country to find a station near you head to thermzyshow.com [Music] this is the ramsay show 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 dad is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice i'm dave ramsey your host dr john deloney ramsey personality best-selling author and host of the ever popular dr john dalone podcast is my co-host today as we talk about your life and your money it's a free call and some say the advice is worth what you pay for it triple eight eight two five five two two five triple eight eight two five five two two five mike is with us in columbia missouri to start this hour hey mike what's up hey dave first off i want to say um listen to your show for a while and it's changed my life so thank you for that thank you i'm yeah kind of facing a decision now i'm kind of looking to make a change in my career and i'm looking at two jobs both of them are paying a little better than i'm making now but the one kind of on the lower side um it has a better location um i kind of it has just a lot of intangibles that are great about the job as far as a good boss be a part owner in the company but on the other hand i have another high paying job that the location is kind of up in the air it's a bigger company and there's probably more room for advancement i just wanted to see kind of what you thought about that as far as what does each one pay the lower paying job pays about 80 000 and the higher paying job i could probably within two or three years probably make double that okay doing what in each case um they're sort of in the sales industry so you're so you're a sales guy yeah sales and consultants yeah okay so the intangibles must be pretty stinking high for you to be willing to take half pay yeah um like you said it's kind of my dream location the the boss is a really successful guy and i think yeah but you're not gonna be i don't really care about his success i'm worried about yours yeah unless you're 23 and you're going to put in two years and learn from an extraordinary mentor is going to carry along the way and you can have somewhere to go yeah how old are you yeah i'm 24. okay all right so is that your idea you're thinking you can kind of write you can learn from this guy because he's a he's a butt kicker um i think that's part of it and then yeah the location is i want to live there it might be more exciting there's something else here what's the what's the the thing you're not saying are you looking for permission to not take this job that you don't really want he's going to pay a lot um i don't know i guess what's the location what's the location of the of the underpaid one that's so that's so appealing um it's so i would be in training um kind of around the columbia area and then it's up in the air where i would go it's been thrown out georgia that's the eighty thousand different locations no that's the higher page okay what about the one that's got the great location where's the great location in columbia it's no it's in the pacific northwest black wire like seattle area okay so you want to move to seattle uh that's appealing to that area that's appealing to you yes why i like the outdoors and you know it's nice to be able to kind of go in your backyard and it's all there and go fishing after work and different things which i know you can do in georgia but it's just not the same it sounds like you're putting a lot of pressure on yourself to make a forever decision you're 24 years old man and if you were telling me that hey i've got the opportunity to work for dave ramsey for two years learn the ins and outs of this thing and he's going to take me along on the ride and then i'm gonna have skill set uh uh i'm gonna have to get a ringside seat to a world class leader and then i'm gonna have him on my um as a reference the rest of my life yeah dude i'll i'm gonna be real rude for a go make the money i'm gonna be rude for a second okay if you're coming to work for me and you want to move to franklin tennessee and the reason you want to come to work for me is because you can go fishing i don't think i want you well i i also like i mean it's in my industry and it would be um it'd be like more responsibility and it would be more um i would just have the freedom to do a lot more in the company and and you know help the company make money you grew up in columbia didn't you uh yeah i've moved all over the country doing different different things i work for a large contractor oh so you've already said so okay all right i i um okay here's the only way i know to help you answer the question because i'm just confused about this call yeah me too um the um what a good way to do this is to john was onto something there it's not forever but do ask yourself the question what do you want to be doing when you're 34 10 years from today and where do you want to be doing it and what kind of money do you want to be making and what kind of a career field do you want to be in and all those kinds of things and once you identify that ask yourself the question which of these takes you there and the love of the great outdoors i'm sorry that's way down the freaking list of the discussion on this because if you make 160 versus 180 you can buy an airline ticket well especially for if you're a salesman for the amount of time you're going to be able to get out and go fishing what i'm telling you if you're my friend if you're my son i'm telling you at 24 years of age you are starting to grind brother go make your money go to a place where you have a lot of influence you're going to learn a lot and georgia's a beautiful wonderful place to live and as dave said man go spend a few weeks in the great northwest um but man get that stuff under your belt and then you have a lot more options when you're 34 and 44 and 54. yeah but but which of these decisions takes you to where you want to be 10 years from now and that'll get you off the short term of oh i don't want to live here ooh ooh and this guy's a nice guy none of that takes you where you want to be 10 years from now and so the the the decision-making variables in this are disturbing and i can't put my finger on exactly why i'm gonna guess if we were to sit down and have some coffee with this person there's a romantic interest at one of these places that has a or a mom and dad interest at one of these places well that's why i ask if you grew up in columbia sound like you're trying to get out of there ah gotcha get out of the south yeah i gotta get away yeah you know i'm getting away from crazy family or something i don't know i don't know what's going on i can't put my finger up but good luck with it dude look out ten years and ask yourself which of these is gonna take you there and hopefully that'll help you answer the question better than these two goofballs did and she'll go with you trust me yeah she'll come find you if she's worth it or you'll go back and buy an airline ticket or whatever however that works huh i think we overthink stuff dave i ain't 24 years old just getting around the mouth listen yeah you don't you know where are you going to college so and so why my girlfriend's going there bad plan warning warning this is the ramsay show [Music] [Music] [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] [Music] [Music] you ever ask the question how much should i be saving or how do i get out of debt faster or how do you invest because i can't even spell it well here's the good news you don't have to figure out the answers on your own ramsey plus which contains financial peace university will guide you every step of the way with the ramsey plus membership you get all the digital teaching that you need to really understand money so you can be confident you're always doing the next right thing our world-class budgeting app every dollar our tools our guided action steps to help you make progress on your money goals fast all of this causes you to win with money many times for the first time ever no more debt there is cash in the bank for emergencies and a real plan where you have a sense of control because you have control ramsey plus helps you get small consistent wins every day that lead to big results and lifelong habits to get started today with a free trial text trial two thirty three seven eighty nine text trial two three three seven eight nine dr john dolone ramsey personality is my co-host today open phones at triple eight eight two five five two two five portland oregon is on the line dave's calling hi dave how are you oh great dave how are you doing better than i deserve what's up i love it hey man uh good to be on with you uh it's funny we just started listening to your show recently um my wife and i up until that point we thought hey man we got it going on and we started listening to your show i don't know i don't know if we have it going on let's lay our scenario out for dave ramsey and see what he would say and what he would do any differently than what we're doing okay you know kind of yeah so looking for some notes i suppose okay yeah far away what do you got i don't know okay i'm 49 she's 46. uh we've got uh high school age kids i'm a real estate broker i work independently self-employed she's a stay at home um we own our home not outright that's what we started like questioning ourselves as we're listening to your position on real estate mortgage you know mortgages and debt in general uh how much how much debt do you have other than your home none i have one uh we have we we own three cars two were paid for and mine is a lease okay all right and so what does it take to pay that fleece off uh you know a 20 some odd grand worth of lease payments probably and what do you well give or take it probably a little less than that but the um well if you're going to keep the car be more than the lease payments but anyway so yeah like 250 grand or something i guess yeah so what's your household income about 500k cool why don't you just pay that off yeah you know i'll tell you where i'm all spread around and yeah that's one of the pots and i actually called my account last year instead of working at least make all of my uh lease payments my remaining lease payments kind of you know tax deducted from the year b said cannot do that um so here's what i got going out right so i've got my house um we owe about 870 on our house um i have it on a 20-year mortgage start off on a 30 and i know i don't want to have 30 years of the mortgage payment so i refined it to a 20 at two and a half percent nice uh yeah yes that's about six grand a month taxes and everything all in um uh we own four rental properties this is kind of also where we started questioning ourselves like dave ramsey said don't buy a property list if you pay it in full yeah um so of the four properties one of them is paid in full uh and the other three are about 50 equity they're all worth say give or take 200 grand and what's owed on the other then we're all less than a hundred okay well let's start with let's start with this premise okay you make a boatload of money you're very successful congratulations very well done what what could i do to add to the peace in your life financially and add to the probability that you end up more wealthy than if you hadn't talked to me and my suggestion my suggestion to do that would be let's take this wonderfully large shovel you have of 500 000 a year and let's line up all of your debts your rentals your home and that stupid fleece car and let's just begin to eliminate debt because if you were making 500 000 and all of these properties were paid for wow what a cool place i should think so yeah and that's going to take a while because you got it sounds to me like you got a million and a half or me and two in debt and you make 500 and so if you put 300 a year on it it's gonna take you four years maybe five years to clean up everything but the beautiful thing is that mathematically you can do that and still live a very tall cotton lifestyle or you can roll off one of those houses that you owe and if you got one of the rentals you're not thrilled with and use some of that equity to accelerate the process but 870 on your home making 500 man you can knock that out fast there's no panic on it the other stuff i'd be leaning into pretty hard and more than anything i want you to do what you're doing with this phone call and that's start to get very intentional with every one of these dollars it's easy to get sloppy when you have this much money coming in it's easy to get chaotic and justify this and justify that because you go i'll make a half a million dollars you know what you do that's pretty stinking incredible very few people do and that's wonderful so you're obviously a bright guy because stupid people generally don't make that kind of money so that's an observation yeah but and dave you taught me this about um scale right so i see a number like 800 000 on a mortgage a remaining mortgage and my heart stops yeah but you gotta lean that against half a million dollars yeah which means nothing so you know take that down that's 87 000 making 50. right and so when i scale it down i remember when i started making 30 and then i went up to 44. and you know what happened to me i ended up in more debt that first year than when i started because i stopped saying no and you're talking about 44 000 yeah nothing compared to this but i just thought i'd won the lottery and i quit saying i quit being attentive to these details and suddenly i had owed more money than i'm when i made less money but dave honestly what i was hearing in your voice was just a little bit of as you started listening to us she went you know i think we're not being intentional enough and so i'm going to ask dave for some steps yeah so that i can be intentional i want to i want a path here because i kind of been wandering around a little bit a little loosey-goosey little margin in the emotions because i'm made enough i could be sloppy and still look good good news is you haven't made a bankruptcy mistake you haven't you haven't gone crazy you didn't call me up with uh 87 million you know right you know her 8.7 million dollar house yeah i mean you can call me up with any of these things so i i i just think you're wonderful and i think you've got a lot of potential i would encourage you to be very intentional step by step and a really good idea is let's just lay out an interesting little simple spreadsheet on how fast we could pay off this stuff if we were intentional and we limited our lifestyle just a little bit just a little bit because 200 000 out of 500 000 divided into 1.2 million in six years you know and i always want to direct people back to the word you said dave i i've never heard you approach somebody like that but what you asked what you told them is i want to know how i can add more peace to your life and if i can pull some of this can i if i can pull the other end of that fulcrum back right if i can pull the other teeter-totter back provide you less leverage and more peace yeah two words that don't go together financial peace right you know like you know government efficiency yeah yeah but there's a moment when you're making half a million dollars and you think i should be sleeping better than this i think half a million times i shouldn't feel like i'm doing something wrong you know or that i shouldn't be drowning as much right yeah that's exactly it that's exactly it and you know uh we took a call in the last hour i think it might have even been the debt free caller um that said you know we suddenly had peace we suddenly had a sense of control just because we had a plan not because we had executed the plan yet yeah but just going from i don't know what the crap's going on too i know exactly where i'm going this is going to be hard but i can do it and this one's gone and then you get a little and that's the time there's but there's peace in when you can see the light at the end of the tunnel mathematically and it's not an oncoming train there's some research that says the day you make the counseling appointment for the first time you start feeling better oh man you wouldn't believe the number when we first started doing financial counseling people would call us up and in order to get ready for the financial counseling meeting they would get their crap together yes and they would cancel we said i talked about it oh we that's how that's happened a lot when you take that first crooked step towards a new trajectory look confused and stumble forward but stumble freaking forward oh there you go this is the ramsey show [Music] so [Applause] [Music] [Applause] [Music] [Applause] [Music] i love it in the lobby of ramsey solutions on the debt free stage gabriel is here to do a debt-free scream hey gabriel how are you hello i'm doing wonderful how are you today dave and dr john better than we deserve brother where you live i live in a little township outside of cleveland ohio oh fun that's a bit of a haul to nashville yes it was a beautiful drive the whole way down oh that's nice how much debt have you paid off i paid off 88 000 in student loan debt how long did this take you this took me 34 months good for you and your range of income during that three years approximately yes that would be 42 000 scaling up to 58 000. excellent what do you do for a living i am a software engineer for a real estate company that's also located outside of cleveland ohio good for you well done dude well done so what was the 88 you said student loan is all student loans it's all student loans and it was a little bit bigger than i wanted because i did a major change halfway through college and that adds an extra year so it's a little extra debt what's your degree in computer science of course good and then you're using it and everything yeah so three years ago you had what feels like an insurmountable debt and you're making forty two thousand what made you look at that and say i can do this um definitely looking at it and saying you got to get started somewhere so getting hired right off the bat and saying well this is time you know i racked up all this debt over the four years my degree helped me get my job so it's time to put it to work and pay the debt off stop it with your accountability and responsibility man we just can't have this yes so what are you 29 28 close 27 27 all right good very cool he's not only that he's a responsible millennial that's so annoying oh you're messing up all of my stuff all your stereotypes are getting screwed up here exactly right yeah and he actually had a plan and he executed the plan oh lee wow i'm so proud of you man yeah who is your biggest cheerleader uh biggest cheerleaders i got a couple people to reference one of the big ones is definitely my mother who's here with me today hey mom my whole family came down to represent got friends i got an uncle and aunt that said oh you're paying off debt let's find some homework that we can pay you to do got another aunt that helped me let me know job opening position so i could get an extra job in the final year and really knock out the debt so thanks to all of them wow wow so everybody got behind you and gave you a lift yes that's beautiful man there is nothing cool about finally getting out of college at 24 and getting your first job and then saying i'm gonna be in it for 36 months with no dates no going out no running around i'm just gonna knock this out what kept you going every single day um every single day definitely looking that at some point you're not gonna own anybody money and it just alleviates all the pain of finding uh money here to go do something fun there because you're restricted by debt and those payments that you need to make so that liberating feeling is definitely what uh i looked forward to you kept looking at that long game huh yeah playing the long game it wasn't that easy off the start because uh the biggest thing that i found was there's a difference between dave ramsey's gazelle intense and gabriel's gazelle and hey listen gabe there's a difference between dave's and everybody's but yes you're right yeah it started that first year making 42 and then you look down and you're like all right i'll make double payments on my student loans this is going to be fantastic and then you get through and you get to 2019 and all of a sudden you're like i should re-budget the whole year and see how good i did and i paid off 14 000 that first year and i'm like that's not bad listen to dave ramsey while on the treadmill and all of a sudden i'm like i could be doing better so i re-ran those numbers budgeted for four things and i actually found out ten thousand dollars i couldn't tell you where i spent it 2018. wow oh and like you say you do a budget you give yourself a raise i got a ten thousand dollar raise tacked it out of the 14 stretched every dollar a little bit farther paid off um six eight jobs yeah yeah 30 000 the next year and then i got those extra jobs going into the third year of 2020 and then i paid off 44 of the remaining debt in that final year wow that's a curve right there baby power the snow while kicking it you are kicking it well it was more than snowball his intensity snowball yeah that's that's a snow plow sacrifice well done sir very very well done okay so you're a professional now 88 000 paid off you're a professional get out of debt guy tell america how do you get out of that um for me what worked best i'm a numbers guy i had spreadsheets i made my own amortization chart so every pay day when i sent it off to pay parent minus loans or government loans is like all right you know i only got 24 payments left and then 23 payments left but having that visualization really helps i also have my um debt free payment sheet here so every time doesn't pay them off it's just there's the refrigerator magnet yeah baby visualization that that's what helped me get through it being able to see and actually say all right we're getting closer it's gonna happen you know it's gazelle intense when he didn't pull out an 80 dream journal he pulled out a single sheet of notebook paper and he was like done yeah six folds hey you mentioned this guy's incredible hitting the treadmill what are some ways you kept yourself sane and whole during this time that's a long time to sprint it is um definitely finding activities that don't require a lot of money are really good so anything that has to do with a little bit of charity work um doing mountain biking that's free going on nature walks uh staying home watching movies with friends and family it's it's being active and enjoying life just not with the super lucrative end of it for a short amount of time yeah so what's the biggest thing you're going to splurge on now that you paid off 88 000. oh geez i could spend a while talking about it i already got it all budgeted out in things but ideally i'm saving up now i got my emergency fund so we're saving for a home but after we get that home i already have everything picked out for my home theater setup ah this is gonna be a home theater wow this is gonna be the real deal it's gonna be a massive home theater your neighbors are not going to be glad you moved in that's good i i already planned on sound proofing the walls so they won't hate me that much you're awesome oh i'm so proud of you brother well done very very well done well we got a copy of rachel cruz's book for you know yourself know your money our latest new york times best seller congratulations you're a hero man you did it you took control of your life in a in a culture where uh the the stereotypical news feed is that your generation is lost and can't do anything and you proved all of that wrong just by taking the taking the reins of the horse and riding it well done i'm so proud of you thank you well well done gabriel from cleveland ohio 88 000 paid off in 34 months making 42-58 count it down brother let's hear a debt free scream three two one i'm debt-free [Applause] [Music] i love it wow that is fun fun stuff open phones at triple eight eight two five five two two five jason is with us in norfolk hi jason welcome to the ramsey show hi dave how you doing good man what's up well i'm calling um for a couple of reasons my wife and i are working on purchasing or building a house and we've been doing your program for now for a little while we've paid down i think nine or ten accounts and we are in uh baby step number two and uh i think it's been around forty two thousand that we've paid down in combined and now the problem is this is that the land that we're building on was heated to us from families so specifically to be used for that kind of thing and we're looking to get our houses and stuff like that but um we have now the only three accounts left are our two cars and a trailer rv trailer that i got stuck with with a previous marriage um not a little too much on it than what it's worth and so we're trying to find out what to do and where we go and snowballing everything what do you owe on it doing that 27 what's it worth um well i was told by some people 19 and i've been told 12. okay so you need to borrow the difference or have the difference what's your household income we make about 152 right now that's good news you can come up with a ten thousand dollar difference and get the things sold yeah we're we're working on that the question is for sale is it up for sale um not at the moment i have it at a friend's house because our current place we rent is an hoa and i haven't been able to get it here to prepare it to sell and i don't have a truck anymore to tow it how long has it been sitting at the friend's house um about a year i'm calling bullcrap you need to get your butt in the car and go over and get that thing cleaned up and get it up for sale man get your ten thousand dollars scraped together but hanging on to your old marriage brother this thing needs to go bye-bye and if some of these cars need to go by by and you don't need to be building a house to get this mess cleaned up you need to stay in that rental house till that happens time to get focused dude you're playing you're eating around the edges you need to bite right in the middle of the apple here this is the ramsey show [Music] [Music] [Music] so [Music] dr john deloney my co-host today this is the ramsey show open phones at triple eight eight two five five two two five jack is in california hi jack welcome to the ramsey show hey dave how's it going better than i deserve how can we help um so i wanted some some advice on on my current situation um i started binge watching your show about three weeks ago and decided okay i'm gonna because i want to buy a house soon so i paid off all my credit cards um but the problem i'm having right now is i have a car that's i spent way too much on last year and i bought it brand new because i drive about 100 mile round trip so i spent 52 000 on my car um and it's about 836 dollar payment um and i was thinking okay i'm just gonna go ahead and pay this off um because the value has already decreased to like 38 000 when i looked it up on kelly blue book so what i wanted advice on was i have about twenty thousand dollars in my savings good and i put my 401k on on hold just last good um because i have i had about 15 going in there um i'm 25 years old i got 40k in there which i want to use for a house um this year i'll make between 120 and 150. excellent okay so and you the balance on the car is what the balance on the car is about 47 000 because i just bought it in september of last year gotcha so you throw 20 at it and that leaves us with 27 and you make 100 and some change and you pay it off in a year right yeah so that's what my my question was because i was thinking of keeping like ten thousand dollars in my savings no you need to get rid of this car okay you're broke man eight hundred dollars yeah no it's ridiculous yeah it's horrible i'd be i'd be freaking out yeah and i i realized uh you know watching your show and then i started paying off my credit card and i was like you know what if i if i want to buy a house i'm going to have a mortgage payment and an 800 car payment now you're not doing realistic no you're too smart to do that let me tell you where you're struggling okay you've learned all of this information and implemented all of this in a very short period of time your intellect went way ahead and left your emotions behind right you know what i'm saying like you understood this intellectually and you went like ding ding ding ding ding and you start doing it and then you're kind of like getting a little bit of emotional whiplash because this has all happened in a relatively short period of time agreed yeah and and you know what watching your show helps me out so much because a lot of this stuff is stuff that my parents are very frugal um and they taught me all this stuff and they were freaking out when you bought this 52 thousand dollar car yeah but they let they let me make my mistakes well yeah you're a grown man and that you know stupid's not illegal and you explained it to them in a good way why you needed this one too yeah 100 miles a week which means i'm going to destroy the value faster that was that was me justifying it in my head yeah but i knew i heard you did when i was doing it yeah i heard you but you made me realize uh how stupid it is when i started watching your show i think i think you're smart and i think you're going to turn this around it's just the re the reason you're saying but but we keep the ten thousand dollars is is not because you intellectually don't see how this is all going to pan out it's because you've done it all in a very short period of time and you went from way over here in the land of stupid to rushing over into the land of the wise and you got a little whiplash doing it emotionally it takes your emotions a little time to catch up so give yourself permission to go this feels weird but i'm going to do it anyway and you feel exposed when you get down to that one thousand dollars and i think that's the point right yeah we want you running well and we want all that money throwing at this stupid car to get rid of this debt when somebody binge watches dave they realize oh gosh i'm not safe and they immediately want to get safe now yeah and so it's i get that impulse i gotta hang on to this and let me tell you the other thing those of you out there that are uh you know you've been broke for 20 years living paycheck to paycheck and you work through this stuff and you work your butt off in your gazelle intense for three years and then you're debt-free and you don't have any payments and then you start actually getting some money and then you look up and you go dead gum i have several hundred thousand dollars and i have no debt there's a there's another thing that happens is your emotions are still back there when you're broke yeah and it feels weird to be able to buy a ten thousand dollar thing and just write a check for it and it's not a big deal yeah mathematically intellectually but your emotions are like back there when you were broke right so you got to heal along the way too yeah i mean we spend more on copier paper and coffee here than i used to make right in this building i mean okay i have a thousand employees well i looked down at that number and i see your heart stopped summer's going through i'm like i'm that little 28 year old guy that's back there broke 30 years ago i'm like crap yes what a coffee you know it's like oh it's a lot of coffee so you know the last time i bought a new car when i was an idiot was it was a long time ago i went to we're looking at buying my wife a new car and or a used car new to her i thought when did the prices go up and she was like 25 years ago right but yeah it's that same they want what for a used car but as you move away from uh one set of financial values and operating in one financial reality and you move into another one your intellect often goes before your emotions almost always and then like it's like later on so i have to look down at the coffee bill and go okay this company did bring in 350 million dollars so we can probably cover this coffee bill you know so shut up you little whining boy yes but on the other hand i look at that number and it just there's still that it still activates those old emotions and so that tells me that still today my emotions have not caught up with the intellectual activities required to run a 350 million dollar company and it may never it may every time they do the company grows so i can't keep up that's right that's right i can't keep the same thing with me you know sharon and i were looking at buying something last night and she goes i want to get this and i'm going to spend a lot of money and she told me how much it was and i went that is not a lot of money you little goob buy it but that nine-year-old little girl from east is still like well that one the one that was terrified and didn't think we'd ever be able to fill up her grocery basket again in the grocery store yeah and now can and not think about it but she's like that's a lot of nanny she's like a mischievous like she's doing something wrong i'm like honey puts two to zeroes on it and we'll call it a lot of money that's not a lot i think dave that is so wise that whether it's your marriage whether it's your kids whether it's your career to always just pause have some built-in pauses to go here's a conversation we were having upstairs we're working on this new book we're uh we know we we say here if you're not growing you're dying and i asked the team it just hit me like a lightning bolt what does growing mean to you what does growing mean to you and they were saying you know intellectual stimulation and exercise plan a good morning routine and reading and spiritual growth and all these things and david occurred to me in this conversation this is just yesterday by the way so i'm still processing it but when you go lift weights you're actually tearing your muscles down it's when you rest that the growth happens and so it's both and right it's it's crushing it and reflection and so it's gazelle intense and i'm in a new stage here you are busting the lactic acid man yeah i'm in a new stage in a new stage in a new stage and there's the pruning that causes growth yeah and man it's always a breakdown to build up always and when you it's when you read that hard book or that hard class it's at night when you sleep that's when the neurons grow that's when the growth happens right and so it goes back to it's both and maybe i should sleep more i'll always tell you that yes but i love this gazelle and hey don't forget to be reflective and realize hey you're you're safe now you're safe now and now we're gonna start working about giving and building and it's it's just keep letting you make sure your head and your heart stay connected through this whole process man yeah that that's um so jack all of that rant to say that um for everybody else out there listening what you're going through is normal yeah it's a it's a normal part of the process for your emotions to catch up with your intellect take the whole twenty thousand down to one thousand work the baby steps like you heard when you were binging and let's get that car paid off and get that debt out of your life and the good news is you can look back when you're 54 and go you know one of the dumbest things i ever did was back when i was 24. i bought a 50 000 car when i was 24 and you can look back that this could you know you may have gotten the dumbest thing out of the way i mean we should have gotten the dumbest thing i was 24 check the dumbest thing you're ever going to do could already be on the list that's a win that's a good way to think and at the end of the day you end up with a 50 000 paid off card that's not a bad not a bad way to end the consolation prize this is the ramsay show [Music] hey it's kelly associate producer and phone screener for the ramsay show if you would like to do your debt free scream live on the show make sure you visit theramsieshow.com and register we would love for you to come to nashville and tell dave your story [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 dr john deloney ramsey personality best-selling author and host of the ever-popular podcast by the same name dr john deloney podcast be sure and check it out he's here to answer your questions about your life i'm here about your money in your life and we've got an opinion about everything so jump in we'll help the phone number is triple eight eight two five five two two five that's triple eight eight two five five two two five lindsay starts us off this hour in los angeles hi lindsay how are you i'm good dave how are you better than i deserve what's up in your world so i was involved in the classroom in february uh praise the lord i'm okay my baby is okay but my car was totaled um i got a settlement for about ten thousand i believe it was about ten thousand seven hundred and i tithed on it gave the ten percent to the lord and i have left about uh nine thousand five hundred and uh my husband and i have twelve 000 about 14 000 in debt and um i'm wondering if i use that settlement money to pay off that debt or do i save it to get a new car okay so the car you were driving the car you were driving that was totaled was worth how much um i believe it was worth about ten thousand i think they gave me what it was worth okay so this money is for the car that's not for any injuries or anything like that yes sir sorry about that oh that's okay i'm just saying so you were driving a ten thousand dollar car they gave you ten thousand dollars approximately and now you buy a ten thousand dollar car right what's wrong with that plan um well um i'm trying it's been hard finding a car because i commute i want to get um a car that's reliable you were driving a 10 000 car yes sir before and we were not having this discussion about reliability okay um oh okay i guess i i feel like you're overthinking it or trying to try to no you're trying to use this as an excuse to move up in car yeah like you like you're gonna win something you didn't win anything they just made you whole if you if you break even on this deal you you come out really good or if you move down in car you come out really good so what was the car you were driving that got killed it was a 2012 camry okay not a bad card 2012 camera is pretty reliable yeah yeah it was amazing i loved it i bought cash for it and i was really upset that it got um totaled so found an amazing 2012 camry for ten thousand dollars because that's what that one was worth okay all right um all right is that okay well yeah i'm i'm i was really wanting something that would get me better gas mileage because i can use to work than a camry my family yeah my camera didn't it did well it did okay um i just you know not an f-150 yeah i mean so okay what are you thinking about okay let me just settle this all right dude it will be a mistake please do not for your sake use this horrible tragedy as an excuse to go further up in car and set yourself back financially and you are rationalizing your butt off i can hear it so here i'll tell you um so what i was well i was thinking my husband just set the record straight my husband thinks that we should pay this money to pay off the debt but it's sticking out because then you would not have a car right exactly that's what i'm thinking yeah so i i want to use it for a car but i want to finish paying off our debt because we're really really close i want to finish paying off our debt and then just save like a couple just a couple more thousand dollars to get myself something that's got low mileage and that will do well like a prius lindsay think about it this way getting in a car wreck was not a scratch off ticket you did land with ten thousand dollars in your pocket and if you were walking to work then maybe this is a different conversation but you need a good car to get you to and from and the insurance company did what they were supposed to do and they made you whole and what you're trying to do is figure out how to make be whole plus and you can't okay i just want you to get back to where you were just get back to zero that's not worse not better that's right you didn't win anything and the insurance did what they're supposed to do they paid you and so go get that same car back and then move on with your day and don't overthink it okay now you know if you if you owed eighty thousand dollars on the car or fifty thousand dollars on the car and this paid the car off and got you out of a mess and we can move you down in car we would talk about that but your car is very reasonable don't move up and and set yourself back and use some of the money you should have been using for debt but you're also not required to move down to a two thousand dollar car either in this situation so if i woke up in your shoes i would buy a ten thousand dollar car they got good gas mileage and by the way there's prius on the market with they're for ten thousand dollars absolutely yeah and i'm not sure that's moving up in car well played i i also understand you owe very little money left and you've got a ten thousand dollar check in your account and i get that's hard yeah but you can't you don't be careless i mean no you can't but but i get it and then you gotta go on and get a car right if that was gonna work you would have been had the car for sale sign in the car when it got totaled and that's that's that's where she's not able to make that leap right and we think that when we get an entrance settlement we win you didn't man that's not what that's supposed to be no it's supposed to make you whole believe me here insurance settlement and win are never in the same sense right right that never works that way so good question thank you for calling yeah i love that heart anthony's with us anthony is in los angeles hi anthony welcome to the ramsey show hello gentlemen good afternoon um i was just calling because uh officially i was like i got out of the main court for uh four years talking to the phone brother hey all we hear is muffled man you're going to speak into your phone yeah sorry about that um so i was just calling uh i just recently got out of the marine corps um i served four years 22 years old and i'm looking to buy my first home with the va loan um i've been approved for 5.5 uh with zero down and i'm wondering how much of that would be smart to actually use none of it none zero there's not a sentence that's come out so far that was smart except for except for the part where you served your country thank you for doing that that's right but the uh uh all right so let's stop you realize the current interest rate is more like two in some change not five and some change um yeah yeah they're trying to charge you double young man did you hear me yeah um it was about 3.25 yeah about 275 okay quotes this morning so on on a conventional with five percent down what's the hurry to buy a house you're 22. what do you do for a living um i do i t what do you make uh 90k good for you it's awesome man that's so cool so you got some good training in the in in the military then didn't you uh yes are you married sir bachelors oh no i'm not married excellent okay all right my advice to you is to wait a little while longer and use some of your fabulous new income to save you up a really nice juicy down payment and get a conventional loan the fees and the closing costs are much lower than on the va and uh certainly according to your quote the interest rates are better that's a horrible interference please do not buy a zero down house in los angeles california with the way the market is out of control right now yeah this is you're gonna be over your head timing is don't do this anytime you don't have the money to do something and you do it it never leads to good things just think about it that way i hope we stopped you get a great apartment and live your life doubt i did though but thank you for your service this is the ramsey show [Music] [Applause] [Music] life is full of firsts as the first and longest serving christian health cost sharing ministry chm has shared medical expenses for its members since 1981. we believe you should have the freedom to focus on your health while being supported by a community of believers giving you the opportunity to create many more firsts [Music] [Applause] [Applause] [Music] dr john dolone ramsey personality is my co-host today hey when folks are hurting we want to make it as easy as possible for them to get the guidance get the resources they need to win to get better and that's why we do this every day we want to help folks over the past year our team has been working hard to build a brand new website that makes it much easier for you to find all the great content the tools the products the services that ramsay has to help you improve every aspect of your life not just your money and guess what it has launched it is called ramsey solutions.com we invite you to check it out it is well done i'm so proud of our tech team all the research and process that went into it at your one stop shop for everything ramsey ramsey solutions.com all your personalities are there including rachel ken anthony christie dr john and of course me all in one spot you no longer have to go on a wild goose chase to find what you need it's all there easy for you to get to with a ton of great resources check it out it's free ramseysolutions.com jeff is in grand rapids hi jeff welcome to the ramsey show hey guys thanks for taking my call sure what's up we got a question yeah a question for you i've been with the same company for over 30 years i've invested everything within my own company i've never ventured out to you know independent ross and i've got a daughter that's recently graduated from college doing exceptionally well where she's debt-free paid the last two years on her own i helped her out and she got some scholarships she's a young 22 year old with a great job 30 000 in the bank wow and my question is um i want to venture out to prepare for the next stage of my life and and get an elp help or investor pro and i don't know if we should do this together i don't know what the best route for us to go i know that she i i didn't try to pressure her she's ready to invest so she's done everything right and i've preached into her which i haven't really listened to you much i've come on to you the last few months from a co-worker so i'm learning myself and i just need some guidance as to what to do what she should do both of us i don't know if we should invest i'm i'm ready to to to hook up with an elp or a smart investor pro is this something we should do together or i don't know you're independent adults this is a father a grown lady and a dad right yes yeah your retirement plans are not combined in any way with the exception when you die you may leave yours to her but i mean other than that no i was just looking for an investment yeah you can get you could both go the same guy for investment advice that'd be fine so just yeah just click smart buster pro and you know you can schedule an appointment and go meet with a guy and both of you meet with him and then you can say you what do you think you're going to use that guy or you know do we want to talk to another one and you could talk that through and just make sure you get someone with the heart of a teacher uh which you should that's we try not to have any smart investor pros that don't have the heart of a teacher but um yeah is there it is not necessary that you both be with the same person it would be okay if you are but it's not necessary and you certainly don't have combined accounts or combined um anything i mean you could share information if you want to you could talk about what we're both doing and how we're trying to win but but um yeah let's let's let her uh she's done a wonderful job of stepping out on her own and let's let her do that and it's a common conversation day that i've had with parents over the years where they've just they've been needed for their coaching and their wisdom and their guidance and their direction and suddenly they graduate college and they're all doing well and the parent goes what do i contribute to them now yeah and that's that shift where just you're enough just that relationship yeah the fact that your dad she's gonna ask you she trusts you you're a good guy but now your your value is less about what you're giving and just the fact that you are you're my dad right and that's a hard transition for parents it is it is yeah because we've gone from doing everything for them yeah and they're doing almost nothing yeah well and i think we were probably doing less than we thought but we sure gave that advice and we sure said hey don't forget to and then you look up and you're like i don't know i kept the grand babies the other day they do a lot [Laughter] you're doing a lot for them i'm just saying there's a lot there's a lot of maintenance involved in them critters oh yes there is theresa is in boston hey teresa welcome to the ramsay show how can we help hi dave and john thank you so much for taking my call sure um so here's our situation um my husband and i were both 57 years old we're raising our granddaughter um she gets about 500 a month for social security um we've just been kind of sticking it in a you know no interest bank account um you have told me and others in the past that that sort of family money not just hers um our my main question is should i be putting that aside for a 5-2 529 plan or should i be rounding out my retirement um with that extra five hundred dollars why is she collecting that social security um her dad has passed away and we're raising her i'm sorry oh my gosh yeah what in the world oh how long ago um six years now and um she's 11. okay all right well here's the thing no you should not be putting it in your retirement and no you shouldn't necessarily be putting it in the 529 it's okay if you put it in the 529 but you are not morally or legally obligated to do that because the ssi that you're receiving is not enough to cover what you spend on this child right she cost your household more than that and um and so then and you are acting as the parent and so you're going to do what is in the best interest of the child well beyond what the ssi amounts to agreed yes okay so what is your household income so it's about 140. okay and then you have the 6000 coming in from ssr so 146 correct correct that goes at the top of your budget 146 and then you go through your budget regardless of where the money came from whether you made the money your husband made the money with an investment comes in whether there's ssi it's just a pile of money and now we're going to give every one of those dollars an assignment towards the baby steps and it sounds like you are out of debt and have your emergency fund and you're on four five and six are you um we yes we're out of debt and haven't um excuse me our emergency fund you should be putting 15 of your household income into retirement above in baby step four above that out of your budget that consists of all of your sources of income uh you would put above the 15 going into retirement you would put um uh uh some money into baby step five towards this kid's college and that's where you're going to load up that uh 529 and if you have an 11 year old you probably are doing more than 500 a month into that but it has nothing to do with the ssi calculation it just has to do you have an 11 year old you need to get caught up saving for college and that's probably you're probably going to beef up baby step 5 and slow down putting any extra on the mortgage because you have a rising child heading towards college wide open right we also have i mean we're 57 so retirement's coming quick and that 500 could help connie there's no 500. okay there's 146. okay so i need to put a little bit more 15 yeah of your income household income into retirement okay if you want to get real technical about it i only put 15 of the 500 in just now okay you want to be real technical about this way the math happens to work out but you need to be putting 15 percent of your total household income in baby step 4 into retirement and then you need to put all you can scrape together beyond that into baby step 5 because this kid you're late for college and you're you're moving forward you got 10 more years to work this kid will be out of college and you will have built a pretty good nest egg by then by doing just 15 percent meanwhile you can work on your house okay that makes quit parsing this money out yeah you didn't say uh i'm gonna put money aside into retirement for my husband's income and then i'm gonna put somebody aside for my income no we called it a household income there is the whole thing baby the whole thing and you don't help your kid by not having retirement paying for their college and then needing their help for your retirement home later on yeah your 100 chance you're going to retire not a 100 chance they're going to college or to some fancy special one huh this is true this is the ramsay show [Music] [Music] from the lobby of ramsey solutions on the debt free stage brent and brenda are with us hey guys how are you hey dave good thank you welcome welcome where do you guys live california we're about whereabouts sacramento oh love sacramento awesome and originally from new zealand i'm a kiwi oh fun well good to have you guys how much data have you paid off paid off 172 thousands uh 172 750 in about 9.2 years good for you slow and steady and your range of income during the 9.2 uh 130 to 195. what do you guys do for a living brennan i work in healthcare um yeah healthcare i'm not a nurse though i work like a coordinator back office type of thing front office so i'm a salesman i sell moldings and doors excellent very fun very fun so 9.2 years was this your house yes sir i'm weird you are officially weird people i paid for a house in california you are double down on weird i love it man i'm proud of you guys thank you we are thrilled what is this house worth probably about 450 and we bought it we bought it for about 2 30. and you own it baby yes sir i love it so what put you on this journey 9.2 years ago well i've been a feu coordinator and just became a dave ramsey financial coach so we've been leading fbus and i think just the power of compounding interest and realizing how much money you can bank in your own account you know if you get ahead of the mortgage and pay it off you can save thousands and thousands of interest absolutely also i'm in sales so you know in the housing economy it can be up and down so it's up at the moment but one day it's going to be down so having having no house payment is going to be really sweet when it goes down yeah that's going to well i mean the whole thing just gives you stability yeah yeah well done so brent and brenda the number of i'm gonna get in shape this year's i've done is a lot and i last about two and a half weeks i work out real hard i get all the the forms and new weights because it's always the way it's pro how in the world have you all kept plugging at this for nine and a half years we're in it together it's a team effort and uh we both were determined we both had like a little sign in the refrigerator saying we're gonna pay the house off in this amount of time and this year and so we've been plugging away at it but we haven't skimped so much we've budget everything really well use the financial principles techniques and also just a testimony to the people in our class too as well so and sometimes it seems like that date is a far off a little bit but once it starts getting closer we start getting more excited and stuff so it's like okay we're going to pay the house off in this amount of time and we'll be debt-free so when you put the number on the refrigerator the very first time all those years ago how far how long did it say it was going to take you well it was technically october 2021 so um we just our mortgage was about i think about 1090 we put down 2300 a month and just pounded it so you beat it by about six or eight months over the original six or eight months yeah very few people go longer than the original go yeah you almost always surprise yourself to some degree mm-hmm yeah and you guys did you were the real tortoise i mean just kept plodding man yep yes definitely that's beautiful the beautiful tortoise and thanks to our coordinators out here the three coordinators who really inspired us and uh and helped us as many classes have you all led well we've only led three classes um the last one was a virtual but fantastic because we got to uh coordinate with people from alaska and minnesota just flipping awesome oh that was via zoom yeah that's great yeah the virtual coordination is it's a different animal but it's also very cool yeah very cool very cool most of our coordination coordinators now are virtual so good for you guys i'm so proud of you all right now you're professionals you have a paid for house in california you're professional debt reducers what's the secret how do people get out of debt well i think it's actually writing things down i i teach my students hey write down what is your 20 year goal and put it somewhere put it in the bathroom like we did put it on the refrigerator and if you have a goal if you have it written down you walk past it every day and and it just helps keep you focused and and also teaching fbu you know you're accountable to the other students um but yeah just writing it down having a goal is important for us yeah fabulous yeah keep it in front of you is on anything maybe that's the secret for the gym thing john appreciate you brent thanks man yeah just just kicking me while i'm down hey john bust feel the john tracks so impressed you showed up early for the show just you're my man although for the exercise thing since kobe they've closed so that's kind of a little deterrent so but you got to keep plugging away and be creative that sounds like an excuse you should probably write that down and put it on the fridge so hey who's who is besides your classmates who is your biggest cheerleaders well i i gotta tell you uh we're pretty self-motivated but um yeah just self-motivated i i'm on the scale of personality you'll appreciate that uh john is i'm probably like at 11 as far as disciplined so i had to be careful to work with brenda you know not just save save save save but she can spend a little money on this a little bit of money on that okay we like to shop and she works in healthcare brent so they will never find your body brothers [Laughter] you guys are fun that's awesome this is so great i'm so proud of well thank you how old are you oh uh 59 59. okay so for women don't ever ask her now it's too late it's too late because i don't care i promise i won't say she's 59. i'm older than both of you so it's no whining so yeah but you're sitting here with a paid for house did you ever think you'd get there we did but i i want to share i remember at 4 35 a.m i was in bed i got my online payment paid the last payment of 15 000 i remember your statement about how it feels so different got up out of bed and i walked across the room and it felt like i was walking on air and i remember that statement you made it it was so amazing and i i told all the classes i said hey remember those positive moments paying that small debt off you know remember and embrace that because the positive motivation motivations more important than the negative don't do this or don't do that so that's true yeah that's true there's a lightness that is very real oh tangible fantasy that people that have never been there don't have yeah i'm so proud for you guys thank you very much what a testimony to younger folks who are looking at a pile of student loans and say it's going to take me three years and you guys have have set a marker out there that says yep it will and it's going to be worth it you're just going to get up and do it every day and do it every day and do it every day you're going to find somebody do it with you and you're going to keep doing it and then you're going to have that moment where you float across your bedroom and it's going to all be worth it it was wonderful thank you thank you for the inspiration you guys wow we're so proud of you you're our inspiration your heroes well done very well done all right here it is 173 000 paid off in 9.2 years by the way that's about seven months early making 130 to 195 house and everything these guys have a paid for california house shut up count it down let's hear a debt-free scream three two one [Applause] [Music] [Applause] that's so rad it changes the whole equation for the next decade everything everything's changed so imagine in a year the the real estate market is is settling and his boss calls him in and says hey we're gonna have to we're gonna have to to downshift our sales goals for doors and he'll go all right and all right have a good week man hope i hope you're good hope you're doing okay yeah yeah if you need a hug holler at me i'm going to be i'm going to be hanging out with brenda i'm going to be going on the my debt free back porch yeah cause we don't uh have a house payment have a good one brother so cool guys this is the ramsey show [Music] [Music] our scripture of the day zechariah 4 10 do not despise these small beginnings for the lord rejoices to see the work begin francis of assisi said start by doing what's necessary then do what's possible and suddenly you are doing the impossible for the lord rejoices to see the work begin sometimes you cannot see the end when you start but you need to start anyway that's what we're saying just start just start you know how you become a writer you're right start writing i don't know what to do an exercise program just start do it anyway just start our question of the day comes from blinds.com they have a 100 satisfaction guarantee means even if you mismeasure or you pick the wrong color they will remake your window blinds for free 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 deal all right today's question comes from ginger in california she writes my husband refuses to deposit his whole check in our joint account and hides money in a separate account he deposits only enough to cover our expenses then turns around and withdraws large amounts later he's a good father horse crap don't want to ruin my kid's life if we divorce that's it so number one he's not a good father number two he's ruining your kids lives not you being forced to do something about this so there's not really a question here dave this is more of a statement yeah your husband is a twerp he is not husband material he is not father material he is a self-centered little child yes and he's yeah he's doing just enough to keep his kids fed and you fed but he's a manipulative power hungry idiot and then he doesn't even care about y'all being fed later on because he'll go get the money back yeah so uh what does she do from here um sits with a counselor absolutely and then she's the fact that she said i don't want to ruin my kids lives if we divorce tells me two things number one she's thought about it or number two the people in her life have said you're this is over. and so she has built this up as i'm not going there and so i have met with people who have said i won't do that and to which you say okay then this is the bed you're choosing to be in you're gonna have to make the best of what you got inside of here i'm gonna tell her this type of manipulation usually comes with violence and or volume and or other types of neglected manipulation beyond just the money this is a symptom right and she's got to sit with a counselor and begin to create a or what plan because this is a mess yeah and it's the uh to give you the strength um the assurance that you're not crazy correct or wrong correct and the words the narrative on how to calmly lay down what will eventually become an ultimatum right or what yeah yeah and you're gonna say you're either going to provide for this family by putting your whole check in the thing and we're all going to work together or we're going to talk about how we're ending this marriage because i'm not going to live like this anymore and these kids are not going to be raised with you as a model for what a husband and a father and a provider looks like yeah because yeah you're damaging your children by allowing them to think he's a good father yes you're throwing gasoline on a legacy forest fire yeah you're there because they're going to duplicate what he does times ten yeah right yeah and to the extent he's yelling at you then they're going to yell and hit yeah and to the to the extent that a the mother of your children is simply an annoyance and in the way of whatever thing you need to buy whatever event you need to attend that's how they're going to treat romantic partners for the rest of their life yeah and you're just you're painting a model here's what that looks like yeah my life is more important than all of y'all's combined my wants and toys and fun and stuff yeah the opposite of this is we often tell people what is the best thing you can do for your children love their mother well that's it when somebody says that's the exact opposite of this whole thing how do i help my kid with uh screw my kids up drinks mistreat their mother that's exactly right hey my kids got anxiety what i do fix your marriage hey my kids are struggling with xyz fix your marriage have a great marriage start there and then we'll start talking about the other stuff yeah yeah yeah i'm sorry ginger i'm sorry it's a horrible thing it's not even a question here it's a horrible thing you're in but the uh if if um you know what we're seeing you know with what you the information you gave us was not throwing your husband under the bus if it was truthful and it is accurate and um then you are sitting in a mess and you need to do something about it that's what we're saying yeah and you probably are going to need some help to do something about it is very few people can navigate these things by themselves you need someone to give you language to it and someone to say look what you're feeling in your heart that this is wrong and you're being mistreated is correct it's accurate it's accurate because you start to feel like you're the problem and you're not the problem it's almost a domestic abuse thing and here look at what she says i don't want to be the one who ruins my kids lives yeah by taking care of me and my children you know what he has said that to her absolutely if you leave me you'll destroy these kids if you don't quit yelling at me about the money you're gonna you're gonna mess these kids up and she says oh my gosh i'm so sorry i'm so sorry yeah that it's got the same tone of a domestic violence that's why you said violence yeah ryan is there ryan's in louisville kentucky hey ryan how are you hey gentlemen thank you so much for taking my call i truly appreciate it sure how can we help well um first off i just wanted to say thanks to your guys program uh my wife and i we paid off a hundred and sixty thousand dollars worth of debt debt-free and uh 2018. so yeah that was awesome and um i guess now we're sitting at uh what would be baby step six but we're are on active duty military and we rent everywhere we go good and and so i want to be saving so that when i do retire um you know we can pay cash for a house so one can i save above the fifteen percent and two if i can where should where should you know what type of account should i be putting that into yeah your baby step six just goes in a separate mutual fund and you nickname that the house fund and you pretend like you're paying off a 200 000 house and you try to get 200 000 in there okay okay because i'm so one of the things that i'm looking at is i'll get promoted uh later on this year so i'm going to get a little over a thousand dollar uh pay bump you know per month and so i just don't know how much of that i guess should i be well you should no out of your budget your own baby steps four five and six you should be putting 15 percent of your income whatever your income is into retirement baby step four five is kids college do you have kids going to college um they're all they're all taken care of gi bill got it gi bill and then uh and and then some are just in in the military themselves oh okay wonderful okay so that check that box right uh and so then you say all right everything above 15 goes towards paying off the house early only we don't have a house so we are building a payout pay cash for the house fund so you basically which is the exact same math yeah so you throw everything in that other mutual fund in baby step six above 15 go of your household income going into retirement so in other words if you got a raise of a hundred of a thousand dollars you're going to raise your retirement by 150 and that gives you another 850 to throw towards this get out of debt house fund okay and i just want you to pile up cash like fast and furious like you were trying to pay off a house exactly and the average person pays off their home in seven to eight years doing our plan and so seven to eight years from now i want you to have enough in there to pay cash for a house okay be the same same exact math it's just you're getting the benefit of the money instead of the mortgage company okay yeah it'll work for you instead of paying that interest out that's excellent man yeah very well done sir and again thank you for serving your country yeah we really really really appreciate that and um yeah when you move around every two years because they move you and most of the housing is in a military community where it's tough to sell a house you can get really stuck if you start buying properties everywhere you go so we tell folks if you're moving every two years for any reason but particularly in the military don't buy just rent and so he was following that advice but this gave him a leg up on how to offset the situation there nothing cool to get out of the military and writing a check for your home right that would be pretty neat that would be pretty neat that puts us hour of the day ramsey showing 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

Views: 37,880

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Keywords: dave ramsay live, dave ramsey, dave ramsey channel, dave ramsey live, dave ramsey live show, dave ramsey live stream, dave ramsey podcast, dave ramsey radio show, dave ramsey show, dave ramsey show full show, dave ramsey show live, ramsey, ramsey solutions, the dave ramsey show, the dave ramsey show live

Id: 8A9lCuYITHM

Length: 121min 15sec (7275 seconds)

Published: Thu Apr 15 2021