You'll Never "YOLO" Your Way To Wealth!

[Music] this is the ramsay show [Applause] 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 host of the dr john dolone show is my co-host today as we talk about your life and your money it's a free call at triple eight eight two five five two two five that's triple eight eight two five five two two dr deloney if you aren't aware has an unbelievably popular show on podcast on uh of course youtube and you can call into his show and be a part of it or you can call him today if you've got questions about mental health anxiety boundaries relationships and all that stuff generally pops up on the show anyway so we're here to help you with your life and with your money triple eight eight two five five two two five chelsea is with us chelsea is in jacksonville florida hi chelsea how are you uh hi i'm doing good how are you better than i deserve what's up um i just had a quick question first off thank you for your show and your principles and everything i cry every time i watch a debt free scream i can't help it me too i've been doing it 30 years um i had a quick question so my husband and i are on baby step three all of our debt is paid off we paid off the harley in december and that was the last of our car payments and any of our debt we currently have our second baby on the way due in february and my husband recently proposed the idea of selling the bike and i don't know how i feel about it because i bought it for him as a wedding gift um and i've been trying again to sell the truck for years but i never thought he would go for selling the motorcycle um so i guess i'm just wondering what you think hmm does he want to sell it for money yeah just just sell it for cash i think he's maybe thinking more about uh you know family and two kids and potential for something bad to happen um so that's what i was wondering is he is he trying to sell it because you all need the cash or is he trying to sell it because and i've heard of this i've had buddies that said man i suddenly riding my motorcycle felt selfish i got two little kids and i'm i'm putting myself in a high risk category right and so i'm gonna sell it because of that but it sounds like that's why he's selling it i think that's where his heart is i think he's just thinking about it a little more he loves writing it and i you know i feel bad him thinking about it but now that he's mentioned it now my thoughts are churning and thinking about well we could get our emergency fund i'll say all up if he sold it and so what's the call what's the bike worth um it's a 09 soft kale i i looked online maybe about 10 000. okay and what's the uh two cars that you're driving worth um right now um he's got a truck and oh six gmc oh gosh i have no idea what they're worth they're just what's your household income um household income is about 120. okay so you can afford the bike you're out of debt you have an emergency fund you have a ten thousand dollar toy in the garage so this has absolutely nothing to do with money right has nothing to do with money so then it comes down to why does he want to sell it and are you okay with that reason if his reasoning is what john is saying that he's going i got two kids this feels i could lay this thing down leave her with two kids i don't want to do that it takes some of the joy out of the bike for now i'll i'll pick up a bike later i'm an empty nester we'll buy two of them and tour the world in them you know and send the kids off to college and whatever but if that's his reasoning um if i'm in your shoes i feel pretty loved yeah i do he's a good man yeah i mean if that's if that's his reasoning i don't think he needs to sell it for money you're it's not you don't have a financial reason to sell the bike if it was a boat and it was ten thousand dollars and it was in the garage and you guys wanted to keep it and it's a toy and you're out of debt and you make 120 a year your total of all your vehicles is less than half your annual income which it definitely is then you know you don't have too much going on here with stuff that has wheels and motors and you don't have a problem um and so you know it and ten thousand dollars doesn't change your life in the positive or the negative in your situation because you've done such a good job on all the other fronts so i think it just comes down to what's his motivation and are you okay with that because i think his motivation is forward-looking and your sadness is due to the nostalgia of you gave it to him from the past and as a wedding gift she was surprised that he would ever sell a gift that i gave him one time you know what i mean yeah i get that a little bit of that but yeah but it's a if if it's you know we don't have him on the line so we don't know what's driving this but no pun intended but um but yeah you just have to decide there what's what's going to happen and so the calls we usually take are the opposite yeah is he won't sell it he's got three kids and we need the money and he's being reckless and it's a sixty five thousand dollar bike you know and so yeah that kind of stuff so i i'm with you my first thought is man if he's selling it because he's starting to look forward and thinking i i need to go take up golf this guy's a stud i was gonna say yeah what a good guy tim is in grand rapids michigan hey tim how are you i'm great uh thanks dave uh john for taking the call sure oh well my question is uh my wife and i will be on step four five and six um within a month or so wonderful and yeah we've been working hard on it um we're behind in investing for retirement for our age how old are you and my question um we're both 40. whoopee and yeah i guess uh yeah 40 isn't so bad but you got plenty of time okay um i guess my question is is uh should we do more than 15 of our income no no because i want the rest of it on your house get your house paid off that's the shortest distance to being a millionaire that's i was 70 sure you're going to say that you should have been 79.99 or yeah no i mean yeah it's because here's the thing if you run the math out you know basically you're gonna use the extra pile of money let's say you raised it to 20 you're going to end up using that to pay off the house anyway so basically what you're doing is investing in order to pay off the house well so let's just go pal fast okay well good we should and we only own 94 000 oh good lord and what do you make a year uh gross is about 120. oh geez dude pay your house off man you're gonna be a baby steps millionaire by the time you're 50. and that that reduces the the retirement liability you have if you have no no house payment exactly ding ding yeah which is one of the big reasons we push you to get this done so average person doing our stuff pays off their home in seven and a half years from time they start and they become a baby steps millionaire on average in about 12 or 14 years and so and the paid off house is a big chunk of your net worth of course to determine your millionaire status head off man yeah yeah yeah yeah good call man thanks for calling [Music] stop paying your overpriced wireless provider and switch to pure talk they use the same network as the larger providers for much less for just 30 a month get unlimited talk text and six gigs of data with no contract the average family saves over seventy dollars a month by switching to pure top just go to puretalk.com and enter the promo code ramsey to save 50 off your first month pure talk simply smarter wireless [Music] dr john dolone ramsey personality is my co-host today open phones at aaa 825-5225 brian is with us brian is in denver hi brian how are you i'm good how are y'all better than i deserve what's up uh i just wanted to know if i should i only work four days a week 40 hours so that's all i can get until november when it goes to five days a week but they shorten the hours till three o'clock should i get a second job or use that time to figure out you know uh side hustle or you know what my passion is uh are you working on getting out of debt what's your financial support yeah i'm on baby step two so okay so money matters then right yes so which one's gonna pay you the most uh in the short term i'd say getting a second job but in the long term aside hustle you know you can scale that indefinitely if you're good at it what's the side hustle i hadn't figured that part out yet so i was going i think there's some side hustles that you could make more this month on than working a part-time job i mean you could you know if you decide um i don't know i'll just make up something let's say you you have carpentry skills and you decide you're gonna build decks uh you make more doing that this month than you can drive an uber right right but i mean because i mean you need a hammer and a saw and get your button gear you know but if you're starting a business that you're going to have to invest in for month after month after month after month and it be six months before you start making an income then to your point yeah you probably should take just a job because you need the money right now to get out of debt and i think the magic would be linking the two yeah if you want to start a side hustle building decks do you get a job at home depot learning how that thing works and talk to tradesmen and or if you want to start an ice cream shop do you get a second job at an ice cream shop but it sounds like you're not there yet sounds like you just need to get to working and get some cash in your door yeah but i mean there's a lot of side hustle small business ideas that make you more money than going down and collecting minimum wage somewhere and you can start them tomorrow you can go mow lawns yeah exactly yeah you'll make money instantaneously i mean you get your leaf blower rich people are afraid of leaves they'll pay you to get rid of them i haven't heard that it's jt is with us jt is in spokane washington hi jt how are you good how are you doing better than i deserve what's up hey so i'm just at a bit of a crossroads with my business right now and struggling to find out what my next move is um basically i'm swamped with work i'm just i'm super busy i'm working well over 40 hours a week um and the income that it's bringing in is just the right amount you know to put food on the table and live modestly right um but i don't have any time to we need to you know grow the income and uh and grow the business and and you know obviously just advance and grow this thing but um i just don't have any time to market and really put a lot of time into the business rather than just the work so i need to hire an employee but i can't afford to drop my income by hiring an employee so i'm kind of at this limbo just wondering okay how do i handle this and what do i do what do you do i repair dental tools you repair dental what tools like the little dental schools i thought wow dental school no tools of repair those little itty bitty drills those are so much okay so if you had 10 hours a week freed up you would spend that on marketing which would result in more business correct cuts now who would do the work when you got more business if you had that 10 hours a week freed up well i would hire somebody and teach them to do a portion of the work yeah okay so here here's my point at this stage of the game uh you are either going to hire someone to uh you're probably going to hire someone and mentor them and show them how to do the stuff and for a month or so how long will it take you to get them up where they can do some work without you watching oh probably probably a month a month and a half so you get you bring somebody on board and you pay them for a month and you make you make less that month by what you've paid them okay because you got the same income coming in you've got the same output same number of drills being repaired correct for that one month correct and so you lose money that month over where you are today but then the next month uh the new guy you've now uh you can almost double your output starting the next month so you're gonna let him um do half of the jobs the next month and you're going to spend that 20 hours out of 40 going and getting new business and you're going to spend the other 20 hours doing the repairs from the new business that you came in and you're going to make a lot more in the second month if you can go get more business follow me yeah yeah you're not going to be you're not going to be a full-time marketer and have one guy doing repairs because right now you've got one guy doing repairs that's that's your entire output you have to increase your output of repairs in addition to doing the marketing you follow me yeah and so you're going to be working 50 on repairs in this first phase now the next employee that you hire might get you out of the repair business and full time into running the business you got two guys completely cranking out two people completely cranking out repairs all day long and while you're running the business in every sense okay making sure supplies are in you're getting new business in you're making sure the payroll is paid um and and it could be that you know that your next part your third person might be an administrative person okay so that that's kind of how i did it when i started but here's the thing you have to take a step back to take these other steps forward but what you want to do is do it very systematically so that it's a a very precise step so that it's you don't want you don't want to go and uh it takes six months for this person to get up to speed on the repairs because then you're making a lot less money for six months that's going to start to get really ouchy so it's important to have some really clear metrics on is this thing in 30 days or 60 days is this working or not yeah and i'd want to know how much business is actually is the business out there a function of me not being able to go get it or is it does it really not exist yeah right yeah you got to know that there's that many dental drills that you can get your hands on to repair right can you double is there enough business out there that you can double your volume right if you had a way to do it yeah and um if not then you may need to raise your prices that's exactly right and that'll slow your business down too and better give you an opportunity to make relationships with these folks and to yeah if you're the only only gig in town it seems like a really niche operation there yeah well there's a lot of dentists oh yeah and they all have lots of drills it never ceases to amaze me there's so many jobs i never knew existed yeah i mean um what a cool little business you know so i was sitting with one of our guys at lunch and he went to a birthday party for his kids and a guy has a foam machine have you seen these things no they plug it into a tub full of soap and it blows foam four feet deep across the park and they give all the kids at the birthday party goggles and they all run into the phone that's that's incredible it's like it's a bubble machine that's all it is and there's people in america unemployed right now and bubble boy is over here making a fortune and what that guy does is he's got a full-time job and he just does this on saturdays i'm sure and he makes more shows up with his machine he makes more with his bubbles that's right than some of you sitting around waiting on your mama to fix it he doesn't even clean up afterwards he just leaves well the kids everybody's clean that's the kids are clean yeah it's soap he's cleaning the park for every road it's for free he cleaned the park for free guys there's a job out there for everyone i'm just saying bubble boy can figure it out that's everybody ought to be able to figure it out as long as there are garages in america there should be no unemployment that's exactly right this is the ramsey show [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Applause] dr john dolone ramsey personality is my co-host today on the debt-free stage right here at ramsey solutions lobby tyler and erica are with us hey guys where y'all from johnson nebraska all right what's that in there omaha so hour near omaha okay well an hour's close in nebraska yeah so uh how much debt have you guys paid off uh 180 628 dollars all right 181 000 and your range of income i'm sorry how long did that take you 17 months and 23 days whoa it was 181 128 180 181 81 and your range of income during that time uh 77 000 to 100 000. okay so you didn't make 181 in 17 months so you must have sold something big we sold a lot of stuff uh we uh we sold we we moved we had a 150 000 loan on our house and then we sold cars tractors trucks uh household items i mean we had a hundred and eight thousand dollars worth items we sold oh my goodness wow and then uh we we wanted to move um to the uh to the lincoln diocese catholic diocese in nebraska to raise our family and uh so we we started looking around at houses and we saw a sign that said you know this divine mercy jesus that says jesus i trust in you and that was our sign yeah we needed to do this and and so we uh we uh found a house in nebraska that we liked we bought it in cash before we sold our house in oh my goodness and then uh we were this is how uh how awesome this was uh we were worried about you know we knew we wanted to get down there but uh we were worried about you know what job are we gonna get and how are we gonna sell the house well we got a phone call from a friend uh we didn't even list our house they bought the house from us oh my god and then i got a phone call from an old boss of mine they wanted me to work for him again down in nebraska and so uh i didn't even have to go looking for it all worked out wonderfully so what do you do i'm a engineer for hormel foods okay excellent excellent very cool what about you erica what do you do uh i was a special education teacher but after we got married then i was a stay-at-home mom all right very fun good i worked briefly over while we were paying off debt but okay so what that what was the hundred and eighty one thousand dollars of debt on so we had uh unsecured loan at twenty thousand five hundred and eighty five dollars for able that i did for a side business which helped us pay off debt uh we had a credit card with six thousand dollars that i used for new concrete and a building we had and then we had our home loan of 154 thousand dollars okay so and then you just sold everything in sight everything we we worked uh we sold we did this plasma business uh selling decorative signs and mechanical parts and then my wife worked at home depot uh to just we were able to get our i mean you guys just exploded like 17 months ago yeah you changed jobs you changed cities you changed your life yeah what in the world happened 17 months ago that set you on fire like this uh we just got married uh we got married september uh 2019. oh okay and then um i had already taken the financial peace university before we had gotten married and i and i actually when i took it i didn't have any debt oh okay now the story's coming out some debts right just a little something just a little bit it married into some debt here just 181 000 ish i mean it wasn't a big deal but um then i i told him i wanted to take the class again as a couple and and he wanted to kind of do it dave ish but she can't do it davish no we took we were both full full bore you know dave program and let's go so wow and decided uh immediately just change jobs change cities everything well it took a little bit but uh we uh it just was the calling for us and you know like i said it was it was definitely divine intervention all of it yeah well i mean you're selling stuff buying stuff getting jobs and it's all just lining up like a hot knife through butter exactly and how was that conversation when you sat down with him and said i love you i'm gonna marry you you owe about about a billion dollars and the tractors and the trucks and all the things that a good old farming boy is gonna say gives me my identity all that's gotta go go how'd that conversation go um well i mean it was a lot of it was like he was like well i'm i want to sell this and i'm like are you sure because i'm like i don't want you to have to sell it because i'm telling you we needed you tricked him well everything's got to go but oh do you want to sell that and he said yeah i'll sell that no really but so it sounds like you had the conversation and you said if i'm all in yep i'm all in so you said like i said jesus i trust in you that's what we said pretty amazing that's awesome good for you guys well done guys how's it feel to be free awesome amazing it's a completely different situation i mean everything's turned upside down you have a cash paid for a house right oh yeah our house yeah all the way through i mean now you got to just make a hundred thousand dollars a year and like save it and become baby steps millionaires i mean my gosh you are on your way wow look at you guys so proud of you thank you great that's very cool financial peace university you have to watch go on that class it'll mess you up everything it'll mess you up you'll sell your tractor this should be the warning sign outside yeah just i'm just telling you don't don't sign up for it i'm going to kill you i'm just it's fat i mean oh my gosh yeah so so giving yourself uh two years later here how different are your conversations it no it's nothing there's no concern about you know money i mean obviously we're doing our budget every month and but it's no you know anxiety about that it's all you know raised our our child and and just everything you know it's it's wonderful yeah it's awesome yeah and is that your child in the background doing the debt-free scream over and over and over he's so excited he's got it ready he knows what to do exactly i love it all right you want to try to put him in there or not yeah we'd love to okay oh yes all right 181 000 paid off in 17 months making 77 to 100. count it down let's hear a debt-free scream three two [Music] [Applause] [Music] way to go you guys he's a lot happier now yeah we got a copy of the legacy journey for you that's the next chapter in your story for sure and of course a copy of the total money makeover for you to give away to someone and change it all you know it's um interesting that we have so much power over our lives once we choose to yeah people uh i mean you guys in psychology call this locus of control but i call it uh you know taking control your own destiny and you know i could never well then you won't then you won't that's right i i don't know how bit well then you won't well you know regular well then you won't but when you just decide an adventure we're going on an adventure yeah we're gonna pay off everything yep 17 months into our marriage because we sold everything we moved cities jobs we changed every that's a lot of change right that's a lot of anxiety it's a lot of and i hear that a lot which is well but but i live here and my first thought is do you have to you don't but i i i need my tractor because i but you don't do you right but i got to have this motorcycle but you don't right yeah what's it worth to be free that's the thing that's impossible it's okay but there's a chance there's a trade-off that's right there's a trade-off you know what's it worth to leave minnesota the number of friends i find a couple and she says i want to stay home and quit my job and i go well you know uh she said i don't only need to make about 700 a month how much is the payment on your minivan 842 dollars well let's just sell the minivan you quit your job oh what yeah yeah oh you could choose and do it it was the ramsay show [Music] [Music] here at ramsey solutions we're trying to transform so many lives that we mess with this toxic culture in america today there's so much out there that needs to be changed in the world of mental health and getting the kind of job that you need with ken coleman that is working in your passion and hey we're going to mess with you so much that you start thinking of the credit card like a cigarette of the financial world if you want to get involved in a place that's causing that level of disruption we're disrupting things that mess up people's lives uh we got a thousand folks on our team right now and about half of them are technology people right now and so if you want to join us whatever it is technology or otherwise we're on the hunt we're gonna hire by 300 folks this year and that includes software engineers ruby on rails java c-sharp front-end technologies ux designers seo content marking marketing specialists data engineers data specialists i mean and it's all over the place and so if you sales people admin people i mean you know if you have an interest find out about the available jobs text work to 33 789 now i will tell you that we work 40 hours we work while we're at work we we get stuff done around here but you do go home after you know you're at home at night i mean we don't work 80 hours but we don't we also don't sit around here and play on our phone and check our facebook you can you can walk down the hall here you can feel it yeah it's it's when you're here it's game on man had a friend of mine from another state walking through here the other day and he goes he goes this is everybody in here works so hard they're all happy and i said yeah we get rid of the other ones it's an amazing idea yeah so yeah if you want to join us we'd love to have you but plan on working while you're here and plan on going home after 40 hours which for technology people is highly unusual because they work them 80 hours on most of these corporate gigs and and they treat you like a freaking robot and we treat you like a human we actually care about people so anyway text work to 33 789 text work to 33789 our question today comes from blinds.com they have a 100 satisfaction guarantee means even if you mismeasure or pick the wrong color they'll remake your blinds for free you get free samples free shipping and with the new promos they run every month you'll save even more always use the magic word promo code ramsey all right today's question comes from ozzy in california i'm currently taking financial peace university with my girlfriend i've completed baby steps one through four and should have my current house paid for and at one and a half years i've also been saving for a second house so my mom can live in my current house when my girlfriend and i get married my girlfriend has a hundred thousand dollars in student loan debt and recently booked a trip to visit friends on the east coast she said that she wants when she gets married and has kids she won't be able to do a trip like this so she wants to go now my first reaction was that she should not go on this trip because of her student debt and when i told her this she told me you know what you should enjoy your money so who's right in this situation what do you think dave um if you marry this girl it's gonna be a long life i was gonna say man y'all are not aligned this is um the old joke is if you marry a woman that likes to spend money you better enjoy making it but that's a negative joke i mean the same would be true opposite if you marry a duper who doesn't earn any money you know i mean there's it's um yeah you got you got a problem that's bigger than it's this yolo problem this i'll never be able to once i get married and have kids my life's over i can't hang out with my friends and so uh then there'll be another thing there'll be another thing no there'll be another always yes so here's the rule okay adults devise a plan and follow it children do what feels good you're dating a child sir was that what i'm i think i must be in a mood no that sounds a little harsh i don't think it's harsh at all i think it's i was kinder than i was more eloquent than i was going to say it um you've got well i mean i just called his girlfriend a baby doll i mean she's just a child but i mean it's not it's not that's kind of harsh but yeah well she was grown up enough to take out a hundred thousand dollars in student loans yeah but that just means she was 18. that's right she has a chronological thing that doesn't hang dude emotional maturity that's true yeah the reality is you have lined up your life in a way that you're almost done paying for your house um you're working on a second house you're working on all your financial house in order you're thinking about your mom you're filling the blank and then you've got somebody who's saying hey you know what we got to live for right now because the life gets awful down the road so let's just live for the right now yeah and those are competing philosophical ways of doing life see yolo contends that tomorrow doesn't matter because it's not guaranteed right yolo contends that um yolo is rationalization and justification for doing what the four-year-old child inside of me wants to do right that's what yolo is right you know yolo says that if you plan for something and save for it and pay for it that you are no fun because you could have just had it now you're no fun right you're no fun and you don't have as much fun right well let me tell you about my life you know what i do now anything i want yes if i want to get on a plane and go to somewhere i can just do it yeah i mean that that's fun yes but it didn't get there by yolo right and so if you live like no one else later you can live and give like no one else but so you can't presuppose and i'm sorry for you little children that live in your mommy's basement and don't like dave ramsey being a boomer and all this crap uh but uh but the the deal is if you want to have a there's an adult fund and i'm not talking about uh something nasty i'm talking about but a grown grown-up fun for grown-ups is a richer deeper kind of fun right you know i got seven grandkids i can load them all on a plane and take them somewhere right anytime i want and that's a different thing than i get to go out to eat whenever i want to go out and eat because you only live lunch and you don't have to check the account right you don't have to you know i don't have to go look and see if i can afford it that's what i'm saying there's a piece to yeah to joy and to fun that the yolo misses yeah yolo is about the heart rate spike it's not about the entire experience which is i can sleep tonight cause i'm not worried about it it's a it's a roller coaster of excitement yeah versus you're looking for a hit right versus deep joy yeah but it's like a it is like a drug hit you know it's a dopamine hit and then the you're always going to come down from that hit so you got to do it again you got to do it again you got to do it again yeah so there is inside of us a little kid that throws a fit on the cereal aisle and wants the frosted nut roasted nut cheerios whether you can afford them or not and mom says no you're four don't throw a fit in the grocery store because i'll bust your butt right right but that little kid lives inside of every one of us i want it i want it now and then they and we say stupid stuff like i deserve it i've worked hard so this let me help you with this you don't deserve nothing nope nothing you don't deserve nothing unless you go get it save up the money and pay for it and then you can say i deserve it but you don't deserve it because you breathe air you entitled a little twit oh my god no that's just not true right it's just not i mean i can say that to myself because that little kid lives inside oh he's in me too yeah he's inside of every one of us his name is immaturity right and the more we don't feed that little kid the sooner he's not there anymore so this happened in my life then you just grow up in your grouchy and direct with a guy who's a girlfriend in california but yeah we we ordered some uh we've had the same crummy front porch furniture forever it wasn't your front porch furniture it's just it might be a hillbilly super uncomfortable right you might be a hillbilly if and finally i got frustrated a few weeks ago a few months ago oh you deserve some furniture well i thought i'm i make good money why am i living like this and then my wife said because we haven't saved up and we can't afford that yet and i was like oh yeah oh yeah and so then we made it a priority and then we got it and we got it this week we have an archer dave it's my it's it's mine yeah we paid for it we saved for it and it's super comfortable yeah and now i can sleep on it without worrying about the payments it doesn't it doesn't doesn't it sits different i promise you some of your people finance your business just think about that just think about that right oh how are you sleeping in a financed bear [Music] oh john will never be out of business this is the ramsay show [Music] have a friend or family member that needs a daily dose of ramsey advice in their life let them know about the ramsay call of the day podcast it's a quick hit of advice about life and money in under 10 minutes check out the ramsey call of the day podcast wherever you listen to podcasts [Music] this is the ramsay show you can be intentional about your character you can have money and a career you are the hero in your story [Music] live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios it's the ramsey show where debt is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice i'm dave ramsey your host dr john deloney ramsey personality is my co-host today open phones here at triple eight eight two five five two two five elizabeth starts this hour in san antonio hi elizabeth how are you hi i'm doing great um so what's going on and i actually wish i was going to say to do my debt-free scream i've been wanting to do that for a long time we are debt-free the house is paid off the cars are paid off everything um i am working full-time and a student also and then in about a year i'll go full-time where i won't work also for nursing um and my husband he works full-time he's phd scientist and then we have a 18 year old son who has moved out and started a business you didn't want to go to college how can we help today okay we just wanted to lay the foundation so we've got everything paid off and my husband wants to buy an all-electric vehicle and we were going to um save up for it to pay cash and currently we have two prius that are um not the plug-in kind and suddenly now today he wants to go purchase it he feels like there's a sudden need that we need to do it now because of everything that's going on in the world and that this is the time not wait so we're also cash flow in my school and so we do have sorry what's going on in the world that demands that you get a plug-in vehicle today i missed i didn't watch the news this morning so he feels like we um like potentially in the future yeah yeah and that we would be better off getting it now that just are you telling me the guy has a phd and he truly believes there's going to be no gasoline not no gas no just okay so we're both very frugal and we um so you know what is going on in the world that demands that you buy an electric vehicle you said hey with all that's going on in the world what the crap does that mean well that the demand for electric vehicles is going up and that they are harder and harder to get and there's a long wait list for you know all the ones that are on the market right now um in other words i want an electric vehicle and i don't want to wait and i don't want to wait and so i'm just now right now i'm making up crap to worry about okay so what's your household income so our household income is about 150 five he makes 113 i make about 43. okay and what are you gonna what are you buying what kind of a car is he wanting like a tesla um so we're between the dw uh id4 the bolt was just recalled on friday so we can't get that one which was much less expensive and then our only other option really is the tesla okay so let me help you with the math to start with you can drive that freaking tesla to the moon and back and mathematically you will never justify how much more you've spent on the tesla than you're paying on then you then the value of your prius you know how much time it's going to take you to recoup 45 000 in electric and gas savings the rest of your freaking life okay so let me just tell you mathematically this is asinine that we're using the idea that we're saving money because we're frugal to get an electric car now if you want to go get a tesla fine go get you a tesla but pay cash for it but you don't you don't say oh everything that's going on in the world and we're frugal people because both of those things are stupid but statements because they don't have anything to do with reality okay that you know everything that's going on in the world they're making teslas you can get a tesla i mean there's not you know and they're not gonna be like not able to get one and if you're not able to get one like a delorean it that means you didn't want one because they went broke okay and elon didn't make it you know but um but the uh but if you get one which is fine i got several friends that have bought them um i prefer a motor but that's okay get you one it gets you a battery it's okay and so but but the point is you guys make enough money to pay cash for a sixty thousand dollar car here's what i think in cash i knew where you buy it when when our brains go to fight or flight when we're scared it actually has a cool bypass mechanism in your brain that turns off your critical thinking part of your of your brain because you it didn't want you sitting at the front of a cave wondering is that a nice tiger or is that a fluffy one a petting tiger it just wanted you to run or to grab a stick and go to war because if if it happened to be a mean tiger and you thought it was a nice one you were going to be dead right and so it's a cool little feature our brains have where it trades it trades speed for accuracy close enough and it sounds like you've got a husband who loves you loves your kids and is consuming 24 7 365 news and he's worked himself up in a panic and he's sitting there at home and at home and at home and what i need to do i need to do something and do something and he can go down a rabbit hole that's going to shoot him out one media slide that's going to tell him we're going to be out of oil it's going to be 111 a gallon it's going to be this and that and then he's comes up with a solution that makes no mathematical sense rational sense climates it makes no sense but it feels like it's the right thing to do and what i need that guy to do is to close the devices get connected to a human being go sit down and tell somebody i'm terrified and i'm about to make a wild decision that doesn't make any mathematical sense doesn't make any rational sense that i'm i'm not i'm not okay it's contrary to my goals it's it's not where i want to be the goals the goals of this family have been to become and be debt free and out of left field mr phd dumps into the middle and goes you're right his brain is completely shut down so let's go to the devoid of critical let's go to the end result the end thing here let's say that we do run out of gas dave or the gas becomes 100 i'm just having fun for a second it's not fun and it does having an electric car will be the your neighbors will line up in your driveway to shoot you if you're the only electric car so the world that you are predicting that you're going to solve for is not going to look like the world you have now plus you have electric car so it's okay that when i panicked i bought bullets i'm not saying that's okay i'm saying that yeah whatever yes way to go dave so what i'm saying is when you solve for chaos you're solving an improbable math problem right so what does that mean it means you're not okay yeah your husband spun out yeah and he needs to put the computer down put the debit card down and go sit down and talk to somebody he's not okay or get some friends in his life this is this is yeah whoo stop the panic it's not the madness and i'm just shaming him straight up for his panicking i mean for his lack of critical thinking skills because it's just stop stop just silly what's up everything that's going on in the world but a drama queen you know come on seriously this is the ramsey show [Music] hmm [Music] still on baby step number one huh how'd you guess with health care costs rising learn how christian healthcare ministries can help you make the most out of your budget visit chministries.org budget don't worry it's worth it [Music] so [Music] you picture your life with no payments maybe that's tough right now maybe you're living paycheck to paycheck you're worried about money chipping away at debt i know it's overwhelming let me tell you when that debt's gone you know what you get peace security options freedom the ability to build wealth the ability to be outrageously generous when you don't have any payments you know what you can do anything you want and you can do this with financial peace university it's our step-by-step plan that teaches you how to save and spend wisely how to build wealth and how to be outrageously generous and it comes with the every dollar budgeting app the premium version and you get it all with a ramsey plus membership nine lessons you go through the class this is the class that's on sale right now at a deal 30 off the 12 month membership for ramsey plus and this is the class that millions and millions and millions of people have gone through to start your free trial of ramsey plus text trial to 33 789 text trial to 33 7 89. so john let me ask you something i'm thinking about that last call um the guy who's uh wanted to buy a tesla but i mean i've talked to people i i remember i had a guy that um he had this classic oh man it was like late 60s truck and it was perfect antique truck and he was a truck driver and he drove over the road five days a week and so he would drive his old truck to the uh terminal get in the 18-wheeler drive all week and then drive his old truck home he was in it twice a week and he was two miles to work so i'd go over there one day and i had always loved this i lusted after this old truck yes it was beautiful it was gone he had traded it for a brand new thirty thousand dollar ford pickup and i'm like dude why did you buy any finance that of course i'm ready to kill him what what why why did you buy a 30 000 pickup gas mileage was killing me [Laughter] four miles a week two over two back for a truck payment anyway and he traded it for i mean there's no possible mathematical equation you know but it didn't weird how uh you know we in sales we used to say people buy emotionally and they uh they justify intellectually so there's that wasn't a fear-based thing that guy was not in a panic he was not having the world's coming to an end and you're not gonna be able to get a tesla thing he had not worked himself up into a watching too much of cnn and he's lost his dadgum mind or something it was not that he just got truck fever he just got a jones for it he saw something that he wanted and he backfilled an argument he went searching for an argument that validated his point he found one and it didn't but but in his head all he was looking for is that's different than the flight or flight thing shutting down your critical thinking skills no that's that's when you go searching for a a a problem that backs up your answer i need a new truck it's like jeopardy yeah i mean i need to state the question yeah i like that's the answer yeah i already know the answer and i got to state the question yeah so when we go looking for things in the world as a great famous quote there um whenever you go looking for the world you will surely find it and so we do that with people we don't like we do that with people we're angry with we do that with people that we love right people stay in toxic relationships because i i'm just gonna only focus on the good stuff and you know you'll talk to them and they'll say well yeah he's only cheated on me four times and he doesn't doesn't hit me anymore and your mouth's dropping open but i'm i've decided i'm only going to look for this i'm not going to look at the full picture same with i want a new truck i just look at that brand new truck i can't afford that new truck and then you start thinking what about this truck do i not like this gas mileage is kill and now i've painted a picture that's gonna backfill the thing the outcome that i want right yeah but that's we do it all the time and that guy might have done that instead of panic do you think the tesla guy potentially usually when somebody comes home and starts laying out a case i really like this tesla i think it's really cool and so now i'm going to backfill the answer and go well the world's coming to an end you're not going to get tesla because the lithium and the batteries there's a possibility you know the the slave labor children aren't able to get enough lithium out of the mines and so we're not gonna be able to have batteries there's a possibility yeah more realistically though somebody's done they start beautiful minding it and they will look at this data point and this data point and that one will stream together and create a picture that's not true but that feels right and it justifies this panicked response we got to do something right now yeah and then you have this poor wife who's just going to school the guy in the movie with a beautiful mind's mind was not that beautiful no that's that's the irony that's right he was he was crazier than a bane he's just he's struggling man but you start pulling together disparate data points to paint up whatever picture you want right and that's turn off the electronics sometimes just stop yeah well and it it does it it is a little bit of affluenza the the flu-like symptoms of affluence uh yeah and so it's this thing if you get the fever i got a fever for a tesla i mean you know how fast those things go 0-60 yeah well but but you know there's battery shortages so you see the stuff that's happening in the world and then you just get stupid right and and you just you every one of us do i catch myself doing it yeah um at different times in my life but um it's just an interesting dichotomy to me because personal finance is eighty percent behavior people it's only twenty percent head knowledge i did it with you so you have to learn to deal with the idiot in your mirror to ever have any freaking money i did it with a guitar recently i've a guitar i've coveted for years somebody i work with cody back here says oh man i was about to sell mine i said well of course i got to see it so he brings it up to the office and where me and james have a cool little band and we're and now now you're really coveting and you've gone you've gone full into biblical covenant plays better than i could have imagined oh yeah and i'm thinking why do i need another guitar to cost this much for once a year when i actually pull it all out and play and how am i you know what i mean so it just begot i i began to backfill i can create an argument for this and at the end of the day i have no need for this at all none zero none none you walked away i walked away well james has it now i sold it to james yeah so i can buy it any time i haven't bought it yet either but yeah it's it's we do it all the time and that's when the thing about affluenza is is that um the more inputs you have uh on your computer more hours you spend on your computer the more hours you spend in front of any screen television or otherwise the more advertising that happens and you're getting about 4 000 to 6 000 ads a day wow if you are using a if you're a typical consumer of television and computer time and if you add to that only hanging out with people who think like you and won't or at least don't love you enough to go that's the stupidest thing i ever heard if you don't have those people in your life you just have a bunch of yes people around you yeah bro people in your life then you're just going to continue to reinforce what happens right before you do something really stupid yeah yeah yeah bro so it's it's it's all about surfer language yeah it's just being able to back out of that that's why it's something so simple like having a budget yeah it just says something that are facts that hold you accountable hold you accountable it's right and it doesn't have to be some friend that knocks you upside the head but it wouldn't hurt yeah but but the you got a little piece of paper here that says when my brain was working this is what we agree this is what we agreed on right oh and it's if it doesn't align with that then possibly i need to back up my brain might not be working is there a gap between impulse and action and that's what a budget gives you that's what a friend gives you that's what a good spouse gives you that's what taking a walk around the block gets you is there a space between you know wait overnight or in in that guy's case a minute ago he's got a good wife yeah who's saying ah did you lose your mind by the way we just spent all this with you would you go find that brain you left it outside on the sidewalk i think and uh you got to call each other out on it and you go that just doesn't make sense and if you know yourself like i know myself i put i put barriers between me and right yeah and again we're sitting here saying that we have both faced exactly the same stuff but i got to tell you folks if you the less television and computer time you have the less financial stupidity will be in your life yeah because you're not getting impacted with as much advertising it's a pretty simple equation this is the ramsey shaft [Music] [Applause] [Applause] [Music] [Music] dr john dolone ramsey personality is my co-host today open phones at triple eight eight two five five two two five in the lobby of ramsey solutions on the debt free stage in person britain and ally are with us hey guys how are you we're doing great how are you dave better than i deserve where do you all live uh we're actually moving from chapel hill up to minneapolis at the moment oh wow yeah got a trailer out in the parking lot i love it well just to do a little drive by debt free screen yeah i like it how much did you guys pay off so we paid off 140 000 in four years wow congrats and your range of income during that time uh we started making around 70 and then down to about 40 for a while and then up to around 110. wow okay what do y'all do for a living i guess i've done everything from flying drones to selling bulk fertilizer to pest control professional yoyo entertaining pretty much anything you can think of wow what are you gonna be doing in minneapolis i've actually got a job as a maintenance director okay yeah right and i'm a preschool teacher and um i work with animals as well i've also been a barn manager so cool yeah phil you found something to do in minneapolis already um yeah i'm currently in the job interview process so wonderful what took you all to minneapolis what was the reason for going there so i grew up in southwestern minnesota i went to college in minneapolis and then elia grew up just north of minneapolis and we went to the same school there so it's going home going home yep we only moved down to chapel hill for a year just to kind of get out of the cities for a little while and experience something new and then we're going to be going back to the family farm so oh wonderful good for you guys that's fun so what kind of debt was 140 000 it was around i want to say 110 in student loans and then a car loan on top of that oh wow how long have you guys been married four years oh oh wait no we're at three three years the wife is the one that forgets it's all right it's okay it's you're kind of on the spot on the radio and everything it's okay yeah that's that's fine all right so uh you've been married about the amount of time you've been working on this debt okay and um so tell me the story what made you guys as soon as you get married you say we're going to knock out 140 000 in debt fast so uh for me you know we both went to the same school it was in state but it was not cheap um kind of went through that whole pushing it off until later process until we graduated and then as graduation present my older brother gave me the audiobook copy of total money makeover and i remember the note that he sent with it said i could have bought you a wallet i could have bought you a belt but those things will fade away so instead i'm going to give you something that if you apply it it's going to change your entire life wow he's always been one for good advice so you know i sat down listened to it and i remember sitting on my bed in my parents basement thinking this is the key to get out of the mountain of mess that i've made for myself yep and he kind of dragged me along kicking and streaming at first i grew up you know with a lot of medical debt in my family and we um just kind of i always thought like that's just how you live is you have debt and medical problems come up and you can't get rid of it and um i always say that i cry that he saved our marriage before we even had problems because if he wouldn't have um got us on this path then we would be where a lot of people are and where my family is and we have freedom because of him so that's powerful that's incredible man i love it we saved my marriage before we even had problems yep and let's be honest he may have sat down and brought it to you but you you got along the journey right yep yeah and i guarantee you there was times you drug him kicking and screaming probably yeah so how has it been you guys have been somewhat nomadic right you lived where everyone where you knew everybody and that comes with its own set of challenges and then you said forget everybody we're moving to the woods in the south and then you've had about enough of that so now you're headed back um what's it been like going back and forth and having these conversations and and um deciding who we're gonna be when we're free from all this yeah well actually this past year was probably the best thing that could have ever happened to us um we have always planned to kind of leave the state for a little while because we always knew that we would spend the rest of our lives there but we um up and moved last september and just literally packed up our whole lives and drove across the country had breakdowns literally in kentucky and had to leave my car there and then drive the rest of the way and um but if we wouldn't have moved we actually shaved off a year of our debt just because of the move and we lived with nothing like we didn't even have a microwave like we had nothing and we saved and like paid off all of our debt and um it's been amazing but you also proved to yourselves what we can live without and what laughter and joy looks like without all these things we thought we had to have exactly and now you've got a new picture that is untethered to stuff and untethered to debt and it's just you two taking on the world in minnesota now yeah yeah it's been life-changing that's incredible good for you very powerful y'all very powerful how's it feel to be free it's unbelievable it's indescribable definitely you know the past i guess since we started taking out loans eight years ago it just started piling up didn't really see the end of it um and then at the beginning of this year i i was sick and tired before but decided i was really sick and tired now um so i talked to a couple of guys that i knew that were doing handyman work you know making 150 200 000 a year just crushing it and they gave me some great pieces of advice and one of them was charge more so uh the quadruple that i was charging and i was getting calls day and night you know working weekends working afternoons after work and i remember sitting down at the kitchen table just adding up all the numbers and she was in the kitchen and i got to that final number and i said babe we've got three thousand dollars left and coming from where we started at 140 that it was peanuts compared to the mountain that we started with yeah i just have a picture of my head of you at a birthday party surrounded by like screaming little kids with a yo-yo just thinking one more just one more birthday you know we're free man you're going to be throwing your yoyos out on the highway on your drive back to minnesota what an amazing journey you two congratulations thank you yeah very well done very well done what do you tell people the key to getting out of debt is i mean like most people always say it's definitely the budget um but for us there was something that you know you can't explain with numbers and that was keeping god at the forefront of our relationship at the beginning of this year we kind of made a decision to to strengthen our relationship with god and we did an in-depth bible study every single week you know like clockwork and looking back on it that's exactly the time that our debt payoff shovel tripled in size for us that was no coincidence yeah it's been quite a journey with god on this way we started our marriage that way we um started our vows like god is first and then we always say family second and work is third and we just have always kind of trucked along that way and it strengthened our bond and our love for each other and i feel like connection is one of the reasons that we made it so if we wouldn't have pushed each other and supported each other and been there through all the tough times because we've had some really rough times these past four years but we wouldn't be here without him and yeah wow well congratulations you guys very very proud of you you are absolute heroes very well done and if you've done this by now i mean the future is so bright you guys can do anything as john said you're so tethered to the right kinds of things here obviously um spiritually and but then that sets up the financial and it sets up the careers so very very well done we got a copy of the legacy journey for you because that's the next chapter in your story you've changed your legacy changed everything and a copy of the total money makeover you can give that away with a nice note to someone and perfect start their journey the way your brother started one with you that's a great note from your brother very cool stuff very cool all right it is britain and ally newly uh recently of many getting ready to be again of minneapolis minnesota 140 000 paid off in four years making 70 to 40 to 110. count it down let's hear a debt free scream three two one we're dead [Applause] yeah that's how they roll in minneapolis [Applause] powerful very well done you had a young couple have been married five years you get and for those of you who are listening you can't feel it inspiring two old married men in this room yeah just looking at saying wow yeah that's what it looks like man yeah well done guys that's very well done and that guy's got a way cooler bigger brother than my little brother does i did not think to give my little brother something that profound good grief i'm gonna call him and ask for a do-over well uh too late great older brother this is the ramsay show [Music] [Music] dr john deloney ramsay personality is my co-host today you can also join him on the dr john dolone show email ask john ramseysolutions.com with your question and kelly and the team that produces that podcast we'll get back to you it's monday wednesday and friday right now or releasing those three days a week and it's all about you calling in and asking questions about your life your relationship that's what it amounts to so um same's true on this show right so you can also leave a voicemail for john and join that show at 8 844-693-3291 844-693-3291 now on september 18th we're going to be doing financial peace accelerated which means we're doing the whole the whole curriculum in one day so you remember like in college you could do mini term or summers and it was like you jam it all into one little thing but we're gonna do the whole thing in one day here at our headquarters and of course we're going to be putting in the can some new videos to add into financial peace university and to replace some of the ones that are there and if you want to be part of that the tickets are a whole twenty dollars uh you will be a studio audience and you will be here in our headquarters at nashville and so check out ramseysolutions.com if you want to plug into that that's the next thing and john will be part of that i'll be part of that rachel will be part of that and george campbell georgia will be part of that we're working on that this morning i'm excited there's some new stuff in there that's going to be neat yeah there's a new lesson or a complete turnover of an old lesson but it's a update that makes it all brand new and it's really excited about that the one you and george are working on i believe yeah and that's that's going to be excellent excellent some of the old standards will be there as well i'll be doing those and we're going to be teaching all day so it's going to be a fun day on september the 18th christopher's with us in miami hi christopher welcome to the ramsey show hey john hey dave how are you guys great man what's up well i got a question i've been following you for years finally got to baby step six all my debts gone everything cars i had a line of credit uh all gone everything gone only thing left is the mortgage got about 52 000 left to pay off on it and i have about a hundred and ten thousand dollars in savings um i'm actually working technically working two jobs right now thinking of transitioning to just doing the one working for myself full time um so i i don't know i mean i really want to get rid of the mortgage i want it gone i want it dead because that's it and then after that i'm free um so i don't know if it's worth just grabbing fifty two thousand dollars and throwing it at the the bank and saying see you later bye or waiting it out i guess maybe it's fear you know the the prospect of going out on my own full time kind of scaring me and wanting to hoard money a little more so i would love to get your thoughts on that well i mean you said you've been listening to me for years yeah is that that part that part was true right yeah you're actually the first guy when i first got staged so you you tell me what am i gonna say you're gonna say to pay off the mortgage yeah and why haven't you already yeah [Laughter] and listen here's the thing if you pay it off and you get really really really scared and the world starts to come to an end you can go get another mortgage that's true if you hate being debt-free if you wake up in the middle of the night and go oh god i'm debt-free then you can go get another mortgage they'll be happy to loan you money against something you already own and you know what that's never going to happen i'll give you a money-back guarantee on this it's not going to happen i mean it's kind of silly you know that right right and so the weird thing is is your fear should not increase when you pay off the mortgage it should decrease right yeah true and i can't think of a better way to go into business for myself than already have established clients already have an established gig sixty thousand dollars in the bank and i don't owe anybody anything right yeah that was that was the goal yeah the cash flow i kept looking at cash flow and i said i need to be i need to be uh you know cash rich at this point i can't have anything tied down in case there's ever a you know an up or a down or whatever it is so yeah that was exactly i i can i can promise you this uh i have never had in 30 years of doing the show someone call me back and go you know what i paid off my mortgage and it ruined my life it's just never happened i mean i got 22 million listeners today listen to this conversation right now none of them are going to call me and go you know dave you ripped me off man i mean you just you completely conned me on that mortgage thing i felt so horrible when i paid it off that i had to go get them in the morning or just never come up i just started a new business and i didn't have a mortgage payment and that really pisses me off dave never never heard that ever kristen's in midland texas hi kristen hi kirsten hi kirsten how are you i'm doing pretty well how are you better than i deserve what's up um so i um became debt-free in april and um about but thanks yeah i'm pretty excited about it but uh yeah about a month ago i ended up having to uh i faced an emergency and had to dip into my emergency fund and move to midland and um i'm in the process of getting my emergency fund back up to a thousand dollars but i i basically i'm trying to decide because i have a medical situation that's urgent that i'm facing but i also need to be moving out in six months and i'm not sure should i be saving toward both or like focus on the medical issue because i'm not willing to go back into debt over my medical stuff um yeah okay i i i don't under i mean for me medical things are because i'm a complete coward um they're all major so uh i you know i mean if you don't go do this medical thing what happens um like we die or i mean no i i i mean sorry this guy well i need about six teeth removed um and it's gonna be expensive and i don't have health insurance um so what do you what do you what do you make what's your income um i make about 18 to 28 an hour i work mostly off of tips um but the uh the months that i've worked so far i've averaged 18 to 20. so what were your what were your dental surgery cost um i'm not sure i'm going to be getting the initial like what's happening with my mouth appointment um pretty soon here probably within a week or two okay i want you to get two different opinions on that two different quotes because it's going to be as expensive as putting a roof on your house and you you would get two quotes for your roofer and so you do the same thing with your dentist okay maybe three maybe three if they're far apart okay because i have found that the dental world is like a lot of other worlds that the pricing is very uh it's a wide spectrum so you may find a lot of difference in the two or three quotes so i want you to do that then once you have that number then you also need to put a number down that says what it's going to take for you to live not where you are because you said i have to quote move out are you with family or something oh yeah my um my brother who actually kind of he's the one who helped me get out of to get out of debt um by using yells program um he uh um he's letting me rent from him uh for six months to help me get on my feet good very nice of it what a good guy okay i want you to work i want you to work all the time as much as your body will allow you to work and i want you to pile up as much cash as you can pile up because i think you can make enough to do both of these things in six months you have you have two goals partying is not one of them going on vacation is not one of them fixing your mouth is one of them and getting on your feet in a sustainable situation is one of them and you can make enough at 20 bucks an hour to do that in six months but that's all you're you're not gonna do anything else that's all you're gonna do and sometimes it gets real scary we don't have real data to work with so get those numbers in front of you get those numbers in front of you and then apply your income to that and you can see that what i'm saying is correct and then you'll calm down and go do it yeah this is the ramsey show [Music] hey it's kelly associate producer and phone screener for the ramsay show if you would like to do your debt free scream live on the show make sure you visit 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 i'm dave ramsey your host dr john deloney ramsey personality is my co-host today open phones at 825-5225 as we talk about your relationships we talk about your mental health we talk about your money we talk about your life and we're gonna do it all right in front of you triple eight eight two five five two two five chris is in boise idaho hi chris welcome to the ramsay show ah thank you how are you guys doing better than i deserve what's up so uh we're at we're we just recently moved up to boise idaho and uh we're looking to buy a house the market up here is crazy insane as far as people get just trying to get into a place so recently we found a place we put an offer on it and we've been offered the possibility of passing on an appraisal and so i just wanted to get your opinion on what that would look like if that's a good idea if it's not a good idea as far as just knowing hey this is where it should be it's based on what an appraiser is saying so just wanted to get your two cents on it okay an appraisal is an opinion of value by a professional uh hypothetically that knows how to establish a logical opinion of value the way a residential appraisal is done is they find the three closest comparable sales closest in geography closest in closing date meaning they didn't close three years ago they closed three months ago three days ago closest in attributes meaning you don't compare a ten thousand square foot house with a five thousand square foot house you compare similar things so the closest comparables are comparables all right and then you adjust for the differences and so how many square feet is the house that you're buying it is 2200 square feet okay and so if the other house was 2300 square feet they would adjust by multiplying the per square foot dollars by 100 and adjust that price to use it to establish your price you follow me how you do the adjustment yeah okay if you're put your house has a pool and that one doesn't they will do a plus or minus adjustment from the other property that they're comparing it to and then they take those three properties adjusted to make them look like yours and an average of those three adjusted properties comparable sales is how the appraisal is established so it's a fairly easy process it's basically sixth grade math with some um with some basic application to it that uses some common sense right now so okay typically if you've been out looking did you buy the house through a real estate agent yes okay so the real estate agent can pull you the three best comparables out of the multiple listing service that the appraiser is likely going to use and what he's saying is because of the location here in the area you kind of have a mix of properties you have you know your track home situations then you have larger lots this particular piece of property that we're buying it's it's like two acres then that's an adjustment to the comparable right if you're comparing it to a track house if you compare it to a track house that was cheaper we would give you add on to that track house price that sold two weeks ago uh because you've got two acres and he has a a track he has a half acre right that makes sense but if you if you guys change no comps in the area there's what there's they're saying there's no cops in the area within because it's a it's outside of boise so within i get from what i've understood those comps are supposed to come within a certain mileage i guess of yeah how far how far out are you outside of boise uh i would say we're probably 15 15 miles oh i mean you can get you can still get a good feel for what this is if the real estate agent cannot pull something that gives you an indication of what the value is you need a new real estate right that's somebody trying to sell you something there's nothing that's comparable oh horse crap they could give you an idea and show you the houses i mean it might it might be too far away to be an ideal comp but but at least give you an indication of values i mean yeah i could i could pull square footage averages across the whole freaking city of boise and use that as a comp and multiply that by 2200 right and i'm not going to be that's going to tell me if i'm way off i mean do you feel like the information you have about the area that you're off or you just feel completely ignorant and vulnerable no i just want to make sure we're not you know we're not over we're not over buying um and an appraiser can't tell you that okay okay well that's good to know because all they're going to try to do is what i just established now you know and so what i don't want you to do is pay you know uh uh eight hundred thousand dollars for a property that comps out at five hundred thousand right then that that's my concern but i don't again what we've seen in the area that's not the case okay it's got acreage that's anywhere near this it still seems on the high side but it's also it's a the house is built in in 19 so it's a fairly new house as well so we're trying to take that into consideration and i think that's what he's getting at is there's not going to be any exact comparables because yeah but he needs to he needs to give you the three best ones he can get his hands on okay and then explain to you what the differences are right and let me put it this way i bought my house in nashville i guess a year ago now nashville has been one of the hottest markets in the planet and my realtor she's amazing her name is amanda she's an elp here several times she said we're walking away from this because this is not a good deal for you and she only got paid when i bought a house that was a realtor who was giving me information not that was in her best interest but that was in her client's best interest does that make sense yeah and here's the thing there but my point is the appraisal is not magical right it's not like going to make the a bad deal it's good appraiser for the bank them saying how much we're gonna loan you well that it is but i mean it's establishing value make sure the bank is not loaning too much right on the property and that but but it's still not magical right it's still not a magical document it's a dude yeah who took three other properties and adjusted right it's a dude and sometimes it's not a smart dude i've i've dealt with some of them they're dumber than a rock and so they drive you crazy in the real estate business sometimes but they're not all i mean it's not a horrible business it's a great business most the people are very very reasonable but if but if you get two appraisals and they're within five percent of each other that's like known as a miracle oh wow i didn't realize it was that volatile yeah i mean or that much variability between yeah absolutely so i mean and that's okay i mean i i two appraisals on piece of property and they're closed i can tell i get a feel for it and i'm good yeah but i think you can take a per square foot on the 2200 fact you got a two acres the fact you're out a little bit make an adjustment and say okay this other house is older it's on a smaller piece of property it's internal and i'm so i'm going to allocate a higher square foot because of those things and you know you're going to tell if you're if you're hundreds of thousands of dollars off the appraisal is not a guarantee that you're not getting screwed it's just not it's not a guarantee of value it's not a guarantee of what the market's going to do in the future it's it's you should not be comfortable just because of the appraisal it's an approximation it's a it's an opinion this is the ramsey show [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] well like we were just talking about there's a lot of hype going on in the real estate market particularly with buyers who think they have to buy right now and it's going to happen it's got to happen right now i got to do it right now um a lot of this is because mortgage interest rates have reached some of the all-time lows and buyers are frantic to lock in these great rates i mean when you're talking about something in the two percent range that's pretty crazy you know three percent was pretty much gold standard i mean my gosh and i i remember selling real estate in the 17 market back in the day so i mean listen you're probably not going to get rates cheaper than that but that does not give you the green light to do stupid stupid as in buying before you're debt free buying with a no down payment buying with no money you know this is going to get you ahead so get your head out of the craziness for a second look at your situation when are you debt free do you have the down payment can you afford a home mortgage mortgage insurance taxes maintenance do you want to do all this i know it's easy to get caught up in this so here's what we're going to do we've got a free mortgage calculator that'll help you with the process you can plug in your numbers and see exactly what your home ownership options are based on your budget go to ramseysolutions.com click free tools and check out the free mortgage calculator ramseysolutions.com and click free tools there's a whole bunch of free tools on there the mortgage calculator is one of the more popular ones dr john dolone ramsey personality is my co-host today caleb is with us in winston-salem hi caleb how are you hey dave i'm good how are you better than i deserve what's up um so a little over an hour ago i actually uh drove my 2004 vehicle into a tree um and it's it doesn't need to take much damage for it to be totaled because are you okay i'm fine yeah i was wearing my seatbelt we're all good um i'm at home anyway i got an elp uh insurance agent earlier this year and now i'm just curious but like i called my dad to try to figure out where we go from here and he's just saying let's just once we get our estimate let's pay for everything in cash and not involve insurance and i'm like why did i get insurance then um so i guess i'm just curious like what would be the benefit of paying for it in cash and what is the benefit of like involving insurance how old are you i am 29 and i'm just figuring all this out that's okay i want to make it fun of you i'm just making sure you weren't like 18 or something because um it does affect rates right um car insurance rates so um i mean you should have normal car insurance rates i do not know why you would not turn in a wreck at 29 years old have you had a bunch of other wrecks have you had some kind of violations or something or i mean you've got like 73 tickets or no i have a pretty clean driving record the only time in my life i didn't turn one in is i had an ex like uh just an obnoxious this is 20 years ago an obnoxious um uh my deductible is 2500 or something like that or 2000 bucks and the damage to the car was 500 bucks it was actually cheaper for me to go pay 500 bucks than it would be to pay out the deductible does that make sense good point what's your deductible um that is a good question i don't know um it's yeah i don't know so i'd find that out well i mean i did look up the kelly blue book value and it's like hundred dollars in my vehicle so okay so if you have a thousand dollar deductible then you may be in the category of what john's talking about and the insurance company is going to write you a 900 check for your loss of your well if you have a thousand dollar deductible and the car is worth 1300 you're gonna get 300 bucks and your premiums are going to go up for turning in iraq right on the next thing so your dad in that case would be right okay yeah you would just say because you're gonna if you got a thousand dollar deductible the first thousand of the thirteen hundred is out of your pocket right yeah and so um you're hoping they give you the full the kbb value of that but if you have a 250 deductible you turn it in right okay because they're gonna give you an eleven hundred dollar check then right yeah i guess i have some homework to do then yeah you call have you called your agent oh no because your dad's not yet yeah yeah yeah you need to you need to gather some information and your agents not um uh you know if you if you're working with an elp to get insurance that means they shop to several different insurance companies so they don't work for the insurance company say they work for you they're an insurance broker and so they can give you good advice on this but if you had if you had a state farm you called the state farm agent they have to turn they have to tell state farm everything so the good news here is these guys this guy's on your team and so my guess is you've got a 250 or a 500 deductible and my guess is you probably need to turn this wreck in because you probably don't have a lot of money to go buy another car with no i'm in baby step two i got a thousand dollars okay so yeah so i'm hoping you did not take a thousand dollar deductible on this car i don't you shouldn't i wouldn't assume so yeah you shouldn't have you probably have a 250 which would be fairly standard so you're going to get 1100 1200 bucks out of the insurance company and you're going to put a little bit of your thousand with this because this is an emergency and you're going to go buy a 1500 car okay with some insurance money i think that's what's going to happen okay and then you're going to have to stop your baby step two and get your thousand dollar bill back up to a thousand again and you know then we're gonna go forward from there the great news is nobody's hurt yeah i'm glad you're okay man yes thank you thank you scares the crap out have you done it yes i'm still kind of shaking a little bit yeah like adrenaline adrenaline dump yeah it may take a few hours but yeah yeah your hands shaking a little just from the the thing yeah i was i was going to the farm friday morning i come around this corner down here dead gum raptor goes completely sideways oh just spun out i just about whipped it all the way around yeah and it just gotten it was been raining and man my heart starts beating right now just remembering it yeah it's a anytime you have that this is this is not fun about to tear up a good car here yeah i'm sorry man i'm sorry you've been through that but i i think you probably have a low deductible if you had a high deductible i think your dad would have been right and he probably carries a high deductible which is probably he's able to and is a more expensive car and he's more of a situation like john had well and and also remember when you know if you get in a single car accident like this you may have a ticket and you have to pay to have the thing towed so there's going to be some money coming out of your emergency fund too so make sure you do it all the right way and get all your info information right yeah because the car's definitely totaled yeah i mean if you bumped it it's 1300 bucks you totally that's right it didn't take much all right gabriel is with us in san antonio hi gabriel how are you i'm doing outstanding how are you better than i deserve what's up i need words of wisdom from you sir um i currently have uh three properties one's a commercial property that one's paid off and then i have a residential house it's also paid off and then the current house i live in i stole the mortgage on it so less than half on it for being there for less than three years i only go 143 i built it for 320 and now about 143 000. what do you make of here between me and the wife um ballpark i'll say a lot closer to between 250 and 300 000. so how quick you're going pal 140 i'm sorry how quick making that kind of money you're going to pay off this 140 000 mortgage um just depends how the business responds so far the business has been doing pretty good i think so you're making a quarter million dollars a year yes sir between 100 i also have three professions i'm a i'm a first responder and i'm also an electrical and mechanical uh contractor yeah that's awesome man you're making a lot of money you should pay i mean you make 250 a year you should pay this off in a year and a half two years shouldn't you that's that's my intent but you know we we have we have some expenses like you know private school for the kids and dude you make a quarter of a million dollars uh yes sir but you know the what i was thinking of doing not only this is the wife's decision or not you know the the house i have in the southeast of san antonio it's a small two-bedroom house that that i had when i first you know just me and myself i was sitting with that for nine and a half years so i i fixed that house up and i made it nice it looks real good and my fellow officers was also a realtor look if you want to sell it fine you can sell it you don't have to sell it you do have to get on a budget because you don't know where all your money's going [Music] so [Music] in the lobby of ramsey solutions on the debt-free stage juan and anna maria are with us hey guys how are you hi hi hello welcome welcome where do you guys live carter georgia all right a little north of atlanta all right welcome to nashville and all the way up here to do a debt free scream how much have you paid off we paid 91 898 in two years and two months wow and your range of income during that two years we start at 75 thousand and right now we are in 152. at 152. great what do you guys do for a living i'm a videographer and i am a technical director for a dietary supplement company wonderful good for you guys well congratulations what kind of debt was the 92 000 yeah uh it was a ton of stuff it was three credit cards it was a personal loan and medical bills and uh student loans okay wow okay how long you guys have been married five years all right so what happened uh halfway into the marriage two years ago two months ago you looked down and you went ah yeah me yeah okay so i had an emergency surgery where we were told that we were going to have to do fertility treatments in order to start our family we kind of freaked out and of course i had done my master's and i had finished that up and we had student loans and we had that grace period so i was like yeah we can pay it off later um but when we started figuring out fertility treatments and ivf and all these things i kind of freaked out and i said we have to do it we have to do it we have to do it and um we kind of at the time we didn't have the income that we have now um and we were kind of struggling with him being in a couple of jobs and not one specific job so we were just basically living off of my salary and i decided let's just do it it doesn't matter we'll get into this 35 000 loan whatever interest rate it doesn't matter we'll just have to do it um i was listening to you at the time and uh i'm not gonna cry i told myself i wasn't gonna cry and uh um i was listening to you at the time and i remember um you know you saying well save up for certain things that you want to do but i was like you know i kind of shut you out for a little bit and i didn't want to listen to it anymore but we actually went through the ivf treatment and it didn't work and i remember just being so devastated that it hadn't worked and now we were sitting there having to pay every month a 900 monthly payment that was just a monthly reminder that it hadn't worked so um amazing that's so hard yeah you're doing good wow yeah so um i told him i just i want to get rid of this loan because it's just a monthly reminder of how bad things were for us and um if you can't tell by his accent yeah from we are from colombia i moved here five years ago and i thought east tennessee for sure i was way off yeah i really like a colombian it's different and yeah has been like um difficult of course but um hard work and um know that everything will be better and working harder as a team because we are a team so yeah so 35 000 of the 92 was the ivf okay and so just the weight of that emotionally made you guys go yeah we got to pounce on this i have to get this out of my face it's driving me nuts exactly we were not gazelle intense after that monthly payment started kicking in and i told him i don't want to think about this every month is just and i think um after that i started again listening to your show and just reading again and making our budget and doing all these things and then in one of your shows i don't remember if it was you or somebody else but you said you know if you're doing ivf go for it stop whatever else you're doing but make sure you save up and you pay cash so that you don't have that monthly reminder in case it didn't work that it didn't and i was like yep and whenever i go and step on that stage and tell people about how we're debt-free i'm going to tell them definitely um pay it as as like right up front don't do loans it's just it's a horrible reminder but we're here there's so much drama involved in the whole process anyway yeah and uh on top of that and the you know you're waiting and you're waiting and you're waiting did it take you know and and then the disappointment and the stuff and then you add to that the slap in the face of the debt payment it's just too much yeah it's just definitely a lot and then you know the the student loans for the master's degree i mean it's gotten me where i am today uh career-wise but i could have definitely taken a different route for that but but you're how old i'm 32 i just turned 32 last week oh happy birthday thank you so you've got plenty of time yeah plenty of time for this all to work out and it will uh for sure and uh so so then you jump on this with both feet at this point and you go okay we're gonna we're gonna actually do this ramsey stuff i'm actually gonna go gazelle intense and we're not gonna do anything and we're getting this whole thing paid off and two years and two months later you're done proof that when you do lean in on it it goes yeah yeah i'm proud of you guys thank you so proud of you guys how's it feel to be free good amazing yeah yeah well done have you had your first month where you've got no bills and that 150 000 has just deposited itself yeah so what we did is we got married and since basically we met in colombia i brought him here we got married while he was doing his whole immigration status change i was basically taking care of the house and we didn't have a big wedding and we didn't have a honeymoon so as soon as we paid it off we scheduled our little honeymoon to cancun and so it was nice to kind of know that it was already paid for we had nothing to worry about and we didn't have to worry about coming home to all these bills and anything that's so good that's so good you deserve a celebration that's peace yeah that's neat yeah that's incredible good for you guys thank you thank you what do you tell people the key to getting out of daddy teamwork yeah work hard and know that you have that reward on the end of your journey for sure it pays off it pays off it may look like you're not ever getting there and a reminder i wanted to send him back to colombia so many times he stopped at marsh too it was it was but definitely now we get to enjoy each other and just we sit at home and we watch our soap operas or telenovelas in spanish and we just enjoy it we enjoy it and we enjoy our fur baby and and our nephews and everything and we it's so nice to just we are able to help and that's huge that's huge for us it's been it's huge for me and for him too but um that's rewarding for me is just knowing that you can help others after you're done with your journey yeah well you're not done you're you're 32. but you got this part of it done you got this part of it done and there's a lot to a lot of upside a lot of wonderful things are going to happen in the next decade of your lives is going to be absolutely amazing i predict so proud of y'all well done very very well done very powerful wow 90 well we've got a copy of the legacy journey for you because of course that is the next chapter in your old story for sure is the legacy that you're building and a copy of the total money makeover for you to give away and get somebody started so juan and anna marie from cartersville georgia the atlanta area 92 000 paid off two years two months making 75 all the way to now 152 what a powerful story incredible count it down let's hear a debt-free scream three [Applause] they are fun my gosh that's wonderful that east tennessee accent coming through what a couple of what incredible couple i love it i love it i love it this is the ramsey show [Music] [Applause] [Music] [Music] our scripture of the day isaiah 41 10 so do not fear for i'm with you do not be dismayed for i am your god i will strengthen you and help you i will uphold you with my righteous right hand brian tracy said character is the ability to follow through on a resolution long after the emotion with which it was made has passed oh we are in need of character in our culture today stephanie is with us in arlington virginia hi stephanie welcome to the ramsay show hello hi hi um so i am a first-time caller but big fan of the show i am calling to get some advice i'm a first-time homebuyer and i went in uh the deep end for my first buy i've been renting ever since i graduated college and i am at 28 officially as of june and i ended up going into a large investment and i'm just kind of looking to get advice in terms of liquidating my assets and my savings hoping to do this without any of my parents help um but they are offering um and unfortunately crypto is not an option which i had actually spent some time learning and investing in um and thought that would be an option to sell my crypto but it sounds like freddie mac and and such have not made legislation that allows me to use that but um i i ended up selling all my employees stock purchase put my employee stock which got me about half of the down payment from my home which is only 10 of the actual loan and the other half i'm looking at my 401k and the first thing i found when i looked up um in terms of getting a 401k loan your show popped up in terms of not getting ever getting a 401k loan i am able to take about 60k in cash or the limit of 50k and alone but i was curious to just get your opinion in terms of um the remaining uh 50k that i would like to liquidate um what would you suggest knowing that i have um the 401k and i'm happy to answer anything i got a little bit lost in the process so you're buying a home you want to buy a home you did all the home inspection and now it's just in terms of uh and you have you have 10 down from the sale of employee stock um yeah so in terms of the um the mortgage so it was i'll just tell you the numbers it was um 760 is what we closed on um and you've already closed on it just stopped a second i don't want to hear all that that the bottom line is you have 10 of your down payment you have not closed yet in the bank from the sale of employee stock correct yes or no yes or no i need no i am still working on getting that 10 percent i want to get 100 okay so how much do you have from the sale of the employee stock employee stock i have 55k 55k all right and so you could do a fannie mae loan with five percent down with that on a 15-year fixed what is your house what is your income my income is about 130. okay all right so you can probably pull this off um you have no other savings at all other than 401k and you said you own some crypto yeah and i put down the 14.5 initial um with just the cash that i had and that was it you taught your earnest money check what was that well you put down 14 500 as earnest money on the contract yes yes yes all right so 55 and you have no other money you have zero emergency fund um i i do have another td ameritrade stock that i could sell or get what does that work pre-cash what's that i could i could pull out 23. it's 55 total but it is i could only access 23 without the double uh it's a roth r ira so i would get double tax though we don't cash out roth iras and we don't cash out 401ks we don't borrow on 401k so why is it why is it you're not cashing out your crypto um it sounds like in terms of sourcing um and trusting where that cash comes from banks are not recognizing it in terms of a down payment no but if you sell your crypto and you don't have the cash sell the crypto what's it worth um i have about 30k and krypto today um i believe there was an issue with with that it needs to be on the books for about two months uh not no you you don't have you have enough down payment to close on the deal now you just don't have enough that you want you can you can do a 95 conventional fannie mae loan you have five percent down so you can do that but you're wanting to put 10 percent down and we're trying to help you get there plus you don't you have no money that you can get to except retirement accounts and you're going to get penalty you're going to get your butt penalized off okay you're too broke you're too broke to buy this house way too broke to buy this house but you've already contracted for it you shouldn't have bought it because you've got all your money stuck in it okay you gotta cause you don't have any money you have no money you're broke i mean all your money's tied up in retirement accounts and other things so anyway the the deal is that um uh uh uh yeah i want you to have an emergency fund in place a rainy day fund and i don't want you i i don't care but i'm saying what i would advise you to do because if i were in your shoes and woke up you need to close on this deal you put down earnest money you made a promise you've made a pledge called a contract to buy this house and so yeah you need to cash out your crypto today to be able to follow through on this and and whatever and you need to have 20 000 cash in the bank after you close on this house do not close on this house and put every dime you have into it because as soon as you move in crap's going to fall in you're going to need a new roof and you're asking for trouble you're asking for trouble being broke and buying a house and so uh it's not a blessing to buy a house when you're broke you just got the 28 year old fever i gotta have a house this is a three-quarter of a million dollar house and you do make 130 grand which feels like a lot but you bought a three-quarter of a million dollar house with no money yeah so broke your 401k and your roth ira does not count because you cannot get to that without penalties and taxes you start cashing this stuff out you're gonna get hit with a 10 penalty plus your tax rate so you're gonna get hit with 40 percent dave i want to borrow money at 40 interest to buy this house i would say no don't do that that doesn't sound wise and that is exactly what i'm sure wouldn't take out a mortgage for 40 yeah right interest geez nuts and but i'm keeping my freaking crypto and i know it's cool yeah to sit at some cool hipster bar and be like oh i got crypto you're broke sell it typical crypto investor put 30 000 cash under your pillow for crying out loud yeah yeah you need you need to put 20 000 bucks in the bank and put the other 10 000 the crypto with the 55 and put a 65 000 down payment on this house and close on it yeah and for god's sake put it on a 15-year fixed and then get a six-month emergency fund 20 000 and start building up your emergency fund there so yeah i don't even it's off man it's um it's just what we talked about in another segment it's just you get this picture in your head and you start getting this fever and all of a sudden i'm gonna do this and move that and sell that and hold on to this and all these competing pictures when you collide when you force a deal yeah you always do a bad deal man and you're forcing this one for sure but yeah you had a whole bunch of stuff going on you need to clean up here anyway so that's good you have the stock options you need the employee stock options you need to clean up you need to clean up the crypto and you need to get over and now you can sit down build your emergency fund start doing your uh investing steadily into building some wealth in your 401k once your emergency fund's in place and quit screwing around with the rest of this stuff yeah still mess with it you just it's not going to get you where you want to go yeah but hey thank you for the call and i hope that helps you john deloney dr john dolone good show today and also with you james childs kelly daniels great work i am dave ramsey your host we'll be back with you before you know it in the meantime remember there's ultimately only one way to financial peace and that's to walk daily with the prince of peace christ jesus [Music] this is james childs producer of the ramsay show did you know the ramsay show is one of the most popular podcasts in the world subscribe or follow today wherever you listen to podcasts [Music] you

Channel: The Ramsey Show - Full Episodes

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Length: 121min 7sec (7267 seconds)

Published: Tue Aug 24 2021