0:30

Live. From the headquarters of

0:32

Ramsey Solution it's the Ramsey show

0:34

or we help people and old

0:37

well didn't work that they love

0:39

and great actual amazing relationship And

0:42

Doctor John Baloney Ramsey personality is

0:44

my co host today. Thank you

0:46

for joining us America! We're so

0:49

glad you're here! Open Phones A

0:51

Aaa, Eight to Five Five Two

0:54

to Five Brennan is where those

0:56

in Tampa I'd Brendan: how are

0:58

you. A. Day:

1:01

How are you doing better than I

1:03

deserve? What's up. Hey

1:05

on. Multimillionaire. Under pressure

1:07

you take my phone. all did not expect I.

1:10

Actually, Have your answer. But yeah, you don't

1:12

mind helping. Mean I've got some questions where

1:14

we're here for your brother. What's up. Okay,

1:18

so I have a house

1:20

that I don't own in

1:23

Colorado. I'm currently living in

1:25

Florida. I purchased.

1:28

And the I guess the Second House

1:30

in Florida and over the past two

1:32

years we've been living in Florida and

1:34

grown to love the state and we

1:36

want to make it a full time

1:39

thing. How all of my family and

1:41

lot of good friends are still back

1:43

in Colorado and like to go back

1:45

there for the summers since I can

1:47

work. Out. Billie from

1:49

anywhere on I'm. My. Wife

1:51

stays home with our three boys

1:53

and on. The further

1:55

complicate things I'd bought. I'm I'm

1:58

selling the current how to. We

2:00

bought two years ago in Florida to

2:02

upgrade to a larger home and

2:05

I need to know what

2:07

best steps I need to

2:10

take or get your opinion on what

2:12

I should do moving forward with selling

2:14

these homes and how you would go about it. You still

2:16

have a house in Colorado? Yes,

2:19

sir. Oh, okay. Because

2:22

you might go back there for a couple months or summer. Correct.

2:26

Yeah. Yes. Okay.

2:29

Do you have mortgages on all this? I

2:31

do. On both of them? On

2:34

both. Yes. Okay. And

2:36

what do you guys make? What do you make? Your wife

2:39

stays home with the boys? I make $2.10 a year.

2:41

Okay. Way to go, man. You're

2:43

killing it. How old are you? Okay.

2:51

The house in Colorado is

2:53

the old girlfriend. You cut loose

2:55

because you got married. Okay.

3:00

Does that make sense? It

3:04

does. Yeah. You got one. You

3:06

got pretty, Dave. She's pretty. She's still got

3:09

one toe in the old pond. Right?

3:13

And that's what's going on here because there's nothing about

3:15

this that makes financial sense. Absolutely

3:18

not. No. I mean, you

3:20

could rent the freaking top of the ritz for what

3:22

you're paying for that house for a couple months a

3:25

year. Right.

3:28

Yeah. There's nothing about it

3:30

that makes financial sense. It's just cut

3:32

it loose, man. It's the

3:34

last thing that says I'm living in

3:36

Florida and use that money

3:38

to pay cash for the other house. It'll

3:40

pay off the other house, won't it? Absolutely.

3:43

Yeah, man. What

3:45

are you doing, man? It's almost like I've

3:47

done this before. Yeah. Yeah.

3:50

When you get married, you got to, what

3:52

is it? You got to unfollow the old

3:54

girlfriend. You have to burn all the old

3:57

phone numbers. That's it. So, Yeah.

4:00

Or whatever you do in the digital

4:02

world. But yeah anyway yeah that that.

4:05

Let. Them are did I miss my

4:07

know? I also wonder how much it's

4:09

how easy it is for the family

4:11

know say owner was replaced with the

4:13

got a place in his didn't see

4:15

it is and i buy scan plan

4:17

but I don't live i don't live

4:19

there anymore and on you know here's

4:21

here's an interesting book business. I currently

4:23

live in Florida right. That's. How

4:26

he opened right. But. Then later on

4:28

we've grown to love this and are going to

4:30

make in our home so the decision has now

4:32

made but it was less view that the user

4:34

both their yeah he still loves his girlfriend daves.

4:37

Wept our out of awesome citizen. Nothing wrong

4:40

with Colorado and his family's back there so

4:42

that's reasonable as elephants. yeah but it's causing

4:44

you to make a bad financial decision. that's

4:46

why we're poking fun at is so the

4:48

and at the decision not it is it

4:50

in in in real time this is the

4:53

case then is gonna save some money and

4:55

then get a really nice air Bnb for.

4:57

The two months ago he as if

4:59

you get as and and probably actually

5:01

something more. Vacationing,

5:03

Right then the old residential suburb house he's got

5:05

some is gonna come clean up, some is going

5:07

to take care of the day, isn't going to

5:09

a frame and the mountain right around. I kind

5:11

of stuff because I'm guessing that house isn't that.

5:14

I might be wrong, man. So.

5:16

Yeah the I'm just gonna have a

5:18

great life there in Florida and. Plan.

5:20

My visits back home to see the family. And.

5:23

And and do those his job away and

5:25

work there couple years. a couple which you

5:27

have got a good some good friends that

5:29

are are in their forties. But.

5:32

They do that was Jackson Hole. Ah. When.

5:34

They first got married there two years and Jackson Hole.

5:37

And. Then they live here now. And. Out.

5:39

But I go back. a lot for the

5:41

summer they just love it and it in the summers

5:43

a particular beautiful sense the out that the same kind

5:46

of thing you can do that and but you just

5:48

do you don't need to own something to do that

5:50

don't where you it on something there's if everything else

5:52

has paid off and you have the money for a

5:55

second home and it's a toy so he be like

5:57

a ski home or something in colorado that come with

5:59

a mountain home, right? And it's

6:01

like a lake house, you know, a

6:03

beach house, it's those kinds, it's all in that

6:05

category but not the, not

6:07

the I'm still hanging on to where I used to

6:10

live home. And I'm mortgaging in the

6:12

meantime. In the meantime, yeah. Jason's

6:14

in Greenville. Hi Jason, what's

6:16

up? Jason?

6:21

How you doing,

6:24

babe? Sorry. How

6:26

can we help? Yeah,

6:29

just my wife and I are

6:31

both teachers and

6:34

we are three years away from state retirement

6:37

in South Carolina and

6:39

so we'll be 48 when we

6:41

retire from teaching with a pension. I'm

6:43

just wondering if I should. What are

6:46

you gonna do with the rest of

6:48

your life? Whatever

6:52

makes me feel good, I guess, or makes

6:54

me happy. Bad plan. That's a terrible plan,

6:56

dude. Don't do that. Headingism leads to heart

6:58

attacks. I

7:01

mean, we have nothing. I mean, we

7:04

have five jobs now. I'm a chef for a

7:06

boys and girls camp in the summer. That's not

7:08

what I'm talking about. We

7:11

really, I mean, we're foster parents.

7:13

Jason, neither

7:16

one of these are even close and

7:19

you know it. So you're 48 freaking

7:21

years old. You have another 50 years

7:23

on the planet, potentially. Chefing

7:26

at the summer camp ain't

7:29

gonna cut it for half a half a

7:31

century, okay? Not gonna work. So

7:33

what are you gonna do with your life? If

7:35

you can answer that question, then sure. That's gonna

7:37

be your encore career after teaching. It doesn't have

7:39

to be a 40 hour a week grind. It

7:42

might be you open a business. It might be

7:44

you do this or that, but it's something you

7:46

put your hand to the plow. Yeah,

7:50

I mean, we are. I

7:52

mean, it is cooking. That's

7:54

my passion. Oh, you want to be a

7:57

chef. You want to open a full-time chef

7:59

thing. You're gonna be a catering or

8:01

in-home private chef or something like that.

8:07

Is that right? Hello?

8:12

This guy's got phone problems. Whatever you do, don't go

8:14

in the phone business. Yeah.

8:18

You're 0 for 2 on the phone, man. Hey,

8:20

this idea, and it's a weird cancer that's somehow

8:22

grown out of the American dream of, I just,

8:24

I want to work real hard so I can

8:26

do nothing. That is a recipe for disaster. Relationally,

8:30

physically, emotionally, spiritually. Spiritually.

8:33

It'll collapse you. You

8:36

will not, there's no great joy except

8:38

in serving. Fishing

8:41

and golf, you'll just

8:43

get fat. Don't do it. This

8:47

is the Ram G-Chef. This

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10:01

Dr. John Deloney, Ramsey Personality

10:03

is my co-host, Bakersfield, California.

10:06

David is with us. Hi, Dave, how are you? I'm

10:09

doing great. How are you guys? Better

10:11

than I deserve. What's up?

10:15

My question is, my

10:17

wife and I are in the process of building a

10:19

home and have

10:21

a construction loan and

10:23

I'm kind of newer to listening to your

10:26

show, so now I'm trying to do things

10:29

probably in reverse order because things are already underway.

10:32

I have a 457 account

10:34

from a prior employer that it's about 100,000

10:37

that I'm able to cash

10:39

out and I'm wondering if it would be

10:41

a good idea to cash that out in

10:44

order to try to shoot for getting it as

10:46

a 15-year mortgage when that

10:49

time comes at the end of the construction loan. How

10:51

old are you? Are

10:55

you not going to be subject to penalties on that? I

10:59

changed employers, so I'm maxing out the 457

11:02

with a new employer now and I still

11:04

have a pension. It's just sitting there

11:07

not getting anything added to it. That

11:09

wasn't my question. I'm pretty

11:12

sure you have a 10% penalty plus your tax

11:14

rate on that. So

11:16

it'll just be the tax rate from the research I've

11:20

looked into and talking to the investment

11:23

company that I was with. Okay.

11:30

It has nothing to do with you reinvesting into the

11:32

other. It's possible that you were... The

11:34

457s take several different forms, so it's

11:36

possible what you're saying is true but

11:39

unlikely. So I'm questioning that.

11:41

You're definitely going to get your taxes on it.

11:44

Yeah, yeah. And so what's

11:46

your household income? It's

11:50

expected to be about 450 before taxes this year. Okay.

11:55

So you're going to get hit with 38% of this. You're

11:57

going to lose almost 40 cents on the dollar. How

12:00

much is in the 457? It's about

12:04

$100,000. It keeps fluctuating. So you're going

12:06

to send the government about $40,000 and

12:08

put $60,000 on your mortgage if you

12:10

do this without a penalty. Yeah,

12:14

that's a hard hit. Yeah.

12:18

This is your tax rate. You make a lot of

12:20

money and you're going to get taxed. I don't know

12:22

what California is going to do to you, but that's

12:24

what federal is going to do to you. You

12:27

might have to add California into that too. Because

12:31

at $450,000, didn't they just pass out like a 15%? We

12:34

hate the rich tax there? Yeah,

12:37

I'm hoping all the things we're trying to do

12:39

to reduce the income and get it below. Below

12:42

what? I mean, you make $450,000. You're

12:47

going to have enough deductions to get it down to $50,000. So

12:52

I mean, that's the consideration. I

12:57

don't know what you're going to have from California. I've

13:00

just got a couple of friends that left there after

13:02

this last piece of legislation because they said, no more.

13:05

No more. You're not taking my stuff no more. So

13:08

they're out. And their income

13:10

earners are higher than you. But

13:13

their whole reason was that the

13:15

thing was a graduated thing and it was aimed only at

13:17

wealthy people. And the wealthy people are going to stay. So

13:19

that's kind of interesting. They're not going to get it. But

13:21

that's what always happens with this. Anyway,

13:24

all that to say, if

13:27

you're going to do it, you need to

13:29

know exactly what that picture is. And it's

13:31

not internet advice that you need. It's tax

13:33

advice. And then you say,

13:35

OK, if it's 40% federal, 38, which I'm pretty

13:37

sure that's right, and there's

13:43

no 10%, which is fine in your

13:45

situation. And

13:47

then in addition to that, California is going

13:50

to hit you for X. Let's

13:52

call that 10. Well, now we're at

13:54

almost 50%. So your 100,000 is going to

13:56

be 50,000. Yeah,

14:00

that's less than I expected. Yeah. Yeah, if

14:02

that's the case you may not want to

14:05

do this I'm thinking think

14:07

there may be another angle on this that you want to do the

14:09

good news is you make a lot of money and you got a

14:11

lot of other ways to Get

14:13

yourself out of debt and get yourself on a

14:15

stronger foundation without having to Get

14:19

destroyed by a state and

14:21

federal government system So I don't know look

14:24

at it and find out exactly good If

14:26

you don't have a good tax person you

14:28

can go to Ramsey solutions comm and

14:31

click on the endorsed local providers That's

14:33

what we call them ELPs for taxes.

14:35

They're Ramsey trusted We

14:37

probably got a thousand or something around the

14:39

nation that are all top-notch Sit

14:42

down with one of those people run the numbers out

14:44

so that you're making the decision What

14:47

however you make it with full disclosure to your

14:49

own brain, right? And

14:51

because I got a feeling you're smart guy usually dumb

14:53

people don't make 450. Okay, so I think You'll

14:57

be able to figure out. Oh, I'm not doing that

14:59

or ooh. Yeah, that's cool. I'm still gonna do it

15:01

Okay, and you can maybe that and get comfortable with

15:03

it. But what you don't want to do is just

15:05

say I googled it and Then

15:08

tax time comes and I'm screwed because I didn't

15:10

really understand you don't want to do that

15:12

There's too much money involved here. So

15:15

and I almost think the meta question is Dave Hey

15:19

even using that word But the bigger question is

15:21

when you start to build a house on land

15:24

It's really easy to get excited and do not at

15:26

the front end count the cost and those things can

15:28

get out from under you Really quick and all of

15:30

a sudden you find yourself cashing out retirement plan you

15:32

find yourself trying to find money Yeah, that wasn't what

15:35

he said, right and I'm going I I Honestly,

15:38

I didn't hear anything in his his story that sounded

15:40

that way in a mirror I would have jumped on

15:42

it. But but yeah that can happen scope creep happens

15:44

all the time. That's a good way I'm when you're

15:46

when you're building The decorator

15:48

forgets that there's a thing called a budget The

15:51

spouse forgets that there's a thing called a

15:53

decorator and then you get into

15:55

this stuff, right? not I wouldn't know anybody that

15:57

that's ever happened to but um I've

16:00

never seen you slam the computer down ever, not

16:02

one time. No,

16:07

we've actually learned to do it, but the first

16:09

time we did it, it was not good. What

16:17

he said is he came late to this party,

16:19

this Ramsey party, and he's liking what

16:21

he's hearing but he's already committed on this. The ball's

16:23

down, going up and down. I

16:25

set this whole deal up on a 30 and I like

16:27

what you're saying about doing a 15, so I'd rather do

16:29

that. That's what I heard and I actually believe in. Yeah,

16:31

I believe in. So what do

16:34

you tell folks, Dave, when they found themselves the

16:37

ship is out of the harbor, it's in

16:39

the open sea and then they find us, is

16:41

it okay to land

16:43

the plane wherever they took off from? Sometimes

16:47

you got to like, I'm walking into closing, I got a 30-year note, I

16:49

don't have the money on a 15, and now I'm

16:51

going to work to refi

16:53

this down the road. No, I wouldn't refi it, I'd

16:55

just pay it extra. Just pay it extra. 15, yeah.

16:59

Whatever the situation is, what you've got to decide is, did

17:02

I do something that's going to take me 10 years

17:06

to walk through and get the

17:08

direction changed? Or if

17:11

so, you probably got a mess, right? Or

17:14

did I do something that's going to, that if

17:16

I really focus on the new information that

17:18

I have, it might set me back

17:20

a year but I'm going to keep going. Yeah, then

17:22

you've got to decide how big the damage is. So

17:25

if you, let me give you an example, you signed up for

17:27

a closing and the payment is

17:29

on a 30-year and the payment is 55%

17:31

of your take-home pay. Well,

17:34

you're screwed, right? Okay? So

17:37

what you need to do is close the house and put it for sale sign

17:39

the art. Because that's, you're not

17:41

going to get out of that one alive. Okay?

17:44

But I took out a 30 instead of a 15

17:47

and I've actually got some margin and

17:49

I can pay it like it's a 15 but I never thought

17:52

of that before hearing you. You're

17:54

not screwed, right? That's a different thing,

17:56

okay? So you just got to assess how

17:58

much damage you've done to yourself. Now

18:00

that you've got new information to measure it by and

18:02

then you can decide how dramatic you

18:05

have to be about the undoing The

18:07

unwinding of all this interesting thing talk

18:09

about getting into debt and getting out of debt as an

18:11

example Larry

18:14

Burkett used to teach this stuff He was a guy

18:16

that I used to hear when a million years ago

18:19

and got to be friends with him he was

18:21

a Christian teacher on what the Bible says about

18:23

money on Christian radio and he

18:27

was an icon in that space and taught me

18:29

a lot a lot and He

18:32

used to say that when they were coaching the

18:34

folks they would see people if it takes you

18:36

three years to get into the debt Expect

18:39

it to take you a year and a half to get out With

18:42

if you turn the ship and be very intense, so

18:45

if you've been making this mess for a decade Don't

18:47

be surprised. It takes you five years to get out of

18:50

the mess. You took you that's a good. That's a good

18:52

algorithm I like you know and even if

18:54

you get very focused and very because when you were making

18:56

the mess you were you were kind of You

18:59

know you're just kind of wandering and

19:01

and when you clean up the mess You're very

19:03

focused and intense so you can cut the time

19:05

down, but don't expect to clean up a decade-long

19:07

mess in 26 minutes Okay, you

19:09

know that's you're not you expect it to

19:11

take a little while you dug yourself a

19:13

freaking hole here You know so that that's

19:16

his Larry would have never said

19:18

that that way, but He

19:21

was a gentleman he was not on mainstream

19:24

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20:05

John Deloni, Ramsey Personality is my co-host.

20:07

Thank you for joining us America. Open

20:09

phones at 888-825-5225. Brandon is up. Hey

20:11

Brandon in Atlanta, how are you?

20:21

Can you hear me? Yes sir,

20:23

what's up? Hey

20:25

Dave, so I just got a hold

20:27

of the Total Money Makeover about two

20:30

weeks ago and I finished it. I'm

20:33

calling because I'm a graduate from Florida.

20:35

I just moved here to Georgia for

20:38

business purposes. Cool, what did you get

20:40

your degree in?

20:42

Marketing. Cool, so you got the new job, huh?

20:45

Yeah, yeah I actually work in the insurance

20:47

industry so I just finished my PNC and

20:50

life and health license. Yeah. But I use

20:52

a lot of the marketing for my soft

20:54

wash business which

20:57

is really why I moved over here. Yeah.

20:59

Dr. Fyze. So here's my thing.

21:01

My monthly income is $27,000

21:04

a month for insurance

21:07

and for

21:09

the year I just opened the business in March

21:11

and at the end of the year 2023 revenue

21:13

was $72,000. So my debt is $31,000 in student

21:16

loans and $33,000 in a

21:18

Ford F-150. So

21:29

kind of lost your mind. I

21:33

know, I know. My game

21:35

plan is to immediately start attacking

21:37

the student loans and then as soon

21:40

as I finish that principal, principal, principal

21:42

on the truck get that out of the

21:45

way because really. Good for you. Although I

21:47

won't, Although I'm making money

21:49

in my head I'm not after reading your

21:51

book. I Really changed my thought process. Good,

21:53

you're right on track man.. Yeah, because you

21:55

need $65,000 and you make 110. Yeah. Yeah.

22:01

Exactly. And it's really like. I'm

22:03

not satisfied until I'm not a debt and

22:06

heard a morning. Person form

22:08

As I would say thank you for writing my book. I

22:10

mean. Is people realize how much people

22:12

you probably how? Thank you for reading it. I

22:14

wrote it when you were born that's amazing, etc.

22:16

Cool was been rewritten or couple of hours we

22:18

were he opted were reopening it for the twentieth

22:21

anniversary is coming out again in April's but

22:23

yeah man that's very cool. I'm proud of you.

22:25

You're doing good work and you you you read

22:27

something and you believed it now you're going to

22:30

act on it's your why we're here, We're proud

22:32

for you. How can we help? Other than that.

22:35

Okay, So. After I

22:37

finish my dad snowball. I.

22:40

Read: have my merge into fun I'm

22:42

gonna talk my said my my my

22:44

memory you already have your merchants what's

22:46

your emergency fund A much. A

22:49

thousand all oh your first baby steps your little

22:51

a margin Yeah okay see ya them when you

22:53

finish your when you finish getting out of debt

22:55

than you build emergency fund baby. Step three right?

22:58

Exactly. Yeah. Okay,

23:01

So. My. My

23:03

question is should I be a do.

23:06

Mondays. Are it so? Monday through

23:08

Friday? except Tuesday's it's. It's

23:10

paid, but. Ah, I

23:12

work in insurance and and she's a

23:15

Saturdays Sundays I'm running the show for

23:17

the business arm. Short.

23:19

Should I be pulling out? Income.

23:21

From them. Pay myself at what I'm do

23:23

another leave it in and in. The

23:26

business Like I don't touch that money. But.

23:28

I don't know if actually pay my thousand and then

23:30

you are not. You're not I yourself. read:

23:33

seventy two thousand dollars. Taxable

23:36

income. Where's. That go. On.

23:41

Would you mean in twenty three years said you made

23:43

seventy two thousand and on your business. Was.

23:46

That rose revenue or taxable. That

23:49

was. that was gross revenue. How you don't make

23:51

a hundred and and thousand? Okay, I

23:53

thought you meant a made seventy Two Of

23:55

you mean you grossed seventy two? What? your

23:57

net profit on the seventy two? or your

23:59

taxes. That. Though.

24:02

My tattoos thirty percent. Ah,

24:05

I wasn't on seventy two. Guess you

24:07

didn't make seventy two. You brought in

24:09

seventy two, but you had expenses. Exactly

24:12

my net income and other words,

24:15

was sixty six Be. As

24:17

a little under sixteen. oh my god you the

24:19

huge margin in the steel. Yeah,

24:22

I do now. oddly any explosions.

24:25

Yeah. It's a learning curve like so

24:28

wherever that six thousand go. That

24:32

sixty thousand sitting in the bank? Great.

24:36

Pay off your truck, Right

24:39

today. That's

24:42

what I'm thinking now. I'm afraid though. If

24:44

I take, why are you afraid with. The

24:47

amount of right and of I'm. My

24:49

question is if it if I pull out

24:51

thirty pay off. The tried it and. I.

24:54

Want the business to grow. I don't want it to be

24:56

like. Oh. You got thirty and

24:58

it's I believe the will go I am

25:00

I'm I'm made sure girls is just because

25:02

he lost irony owing to grow it you

25:04

grew up from nothing. Brought

25:07

in seventy. I sixty. So.

25:09

Do that again. Ah. Yeah.

25:11

You're right, And. That's why was asking

25:13

Those people have advised me do people are

25:16

in a dumb as I do not want

25:18

to deal with somebody is only my life,

25:20

nobody's gonna own life. You're doing great man.

25:22

If you take this, you're gonna make more

25:25

if you don't and reinvest a dime into

25:27

this business union putting money into it last

25:29

year. did you. Know

25:32

I'm you don't run viewed as I don't put

25:34

money into it this year and grow it from

25:36

seventy to one hundred and dance and net eighty

25:38

on that. Nothing

25:40

to be afraid of. I.

25:43

Hear you a more party your truck payment on

25:45

I am also the jump. Yeah.

25:48

I just got this talk in that town on

25:50

all my stuff. The now I'm realizing like really

25:52

narrowing or with I think the Nemesis as if

25:54

after reading the book you know I'm I'm I'm

25:56

going to pay both the truck and the student

25:59

loan off by. The first of

26:01

June ready set, Go.

26:05

Agreed. Okay yeah man I love

26:07

you man you're out your ear while I

26:09

do. This is so co pay he agreed

26:11

on national radio yeah this is that have

26:13

binding contract and we know where you live

26:15

exactly now we don't his my old the

26:17

Surface ssssss. Ssssss

26:20

at less a lock right

26:22

there is. Ah, Nancy's in

26:24

Charleston, South Carolina. A Nancy,

26:26

what's up? Poorly,

26:29

thank you for having me on that

26:31

far. I've been wanting to. Ask

26:34

you this question on it so

26:36

I'm gonna give you the. Question

26:38

First: Yes Ma'am Fit waste

26:40

of money to sell my

26:42

rag Top Line rental property

26:44

even though I might lose

26:46

about two hundred the twenties.

26:49

Act Two hundred fifty thousand from capital

26:51

gains and she's and all that comes

26:53

with selling the house. So.

26:56

So how's one start? Lumley Lump, Can I

26:58

ask you a couple questions? That.

27:00

Some grata capital gains, That.

27:03

Tells me that you're going to have a profit.

27:06

Of over a million dollars on his

27:08

property. Away

27:11

Okay, so didn't let me give you that number.

27:13

Some water or. Soda

27:15

House is worth. Eight hundred

27:17

thousand rock. How long have you any

27:19

be bought at? Thirty

27:22

years. Any less hundred

27:24

twenty thousand and have you ever

27:26

had depreciated it on your taxes?

27:30

When. You to the taxes and you know. That

27:32

I don't know. Microbes? You probably do

27:34

have some I doing your taxes and

27:36

helping you. Yes,

27:38

Okay, they've They've been riding the house

27:41

off. During. The time you

27:43

been renting it. And so you

27:45

have a basis of close to

27:47

zero, So your taxes will be

27:49

around fifteen percent of eight hundred

27:51

thousand minus the expenses to sell

27:53

it. So I mean you, you

27:55

probably have a hundred. Maybe.

27:58

A hundred thousand in taxes, Okay,

28:01

okay good. I'm. Able

28:04

to go to bed. Early warning for. Ah,

28:09

I would just. As looking

28:11

up like how much the

28:13

capital gains are and then

28:15

because my father. Is from

28:17

a from a foreign countries.

28:20

In a so that he was

28:22

thirty percent of capital. Gains in

28:24

in my part would be

28:27

twenty percent. So society has

28:29

been person. In the United

28:31

States is a Sunni muslims were talking about. Yes,

28:35

Yes, Fifteen percent. Unless

28:37

you make over four hundred thousand and than

28:39

is twenty percent is a household income over

28:41

forty, you over four hundred thousand. Know

28:44

that a smelt smoke again

28:46

percent of your gain. And.

28:48

Your gain is probably all of it.

28:51

Because. They probably depreciated your bases down

28:53

to zero. So. It's only

28:56

about going to be about fifteen percent

28:58

of eight hundred minus sales expenses. So

29:00

before you make this decision, sit down

29:02

with a tax professional and let them

29:04

actually do the calculations. Not some goober

29:06

on the radio like me, I think

29:08

I'm pretty close, but you need to

29:11

know real numbers before you make a

29:13

decision on something this big from a

29:15

professional. Sit down with attacks pro of

29:17

them calculated out for you and on

29:19

you're gonna find it's can be run

29:21

around one hundred bus make sure it

29:23

is. This is the Ramsey. Show. If

29:29

current times have shown us anything,

29:31

it's that the least expected events

29:33

can and will happen and we

29:36

have to deal with it. That's

29:38

why everyone who has a family

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counting on them needs term life

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30:31

As on Baloney Ramsey Personality On Dave

30:33

Ramsey your host. Thanks for joining us.

30:36

Kimberly His next Kimberly as in

30:38

Boston Mass I Kimberly: Are you.

30:41

And an hour you'd is better than I deserve.

30:43

What's up. Or

30:45

so has the site on.

30:48

Yeah, half ago I get

30:50

divorced and remarried. And

30:52

my husband now and I are

30:54

trying to. That situation,

30:56

basically.allies. and. That our finances

30:59

all an order and right now.

31:01

We can put it on on paper,

31:04

they create a budget and stick to

31:06

it, but it still seemed somehow that

31:08

were overreacting our accounts at least twice

31:10

a month. You wrote out a

31:12

budget that causes your.overdraft. If.

31:15

You're sticking crazy if you're sticking to your

31:17

plan. Your plan was to overdraft. Wasn't

31:19

my plan to overdraft that all. Then you're not sticking

31:22

to remain calm. I. Think we might

31:24

not our budget off. I think

31:26

that are not sticking to your plan your who's not

31:28

sick into their plans. Unless

31:32

we wrote out a plan the says

31:34

i want overdrafts intentionally, you are obviously

31:36

not executing the plan. Is that fair?

31:40

Fair? Yeah, okay. So. You're

31:42

not sticking to the plan. Why

31:44

not? Things

31:47

like pop up that we weren't aware of

31:49

and things like that. I think that's where

31:51

where. Got What? pizza? Know

31:54

honestly we go out to eat once

31:57

a week. Like what? what popped up.

32:00

Oh. Wow! I had

32:02

to get a lawyer to an end

32:05

up getting custody of my children. My

32:07

acts on when I don't pop

32:10

up. On

32:12

that just popped up. Recently.

32:14

Within the past couple of months ago.

32:16

And how much was that? Three.

32:19

Thousand? Okay, What

32:21

else has popped up? On.

32:25

I don't think were paying attention to

32:27

exactly like all the subscriptions that we

32:29

have. And. Things like that, Not all

32:31

of a handler. that's a. That's

32:34

an intentional exclusion. Okay,

32:37

so you're but I'm your brother. Authors get

32:39

limitless a backup. you're not doing as badly

32:41

as you think you are. Okay,

32:43

okay and I'm not going to beat you up like

32:45

you're a complete failure because you're nice. Here's what normally

32:48

happens when you start doing a budget. It

32:50

takes ninety days. For.

32:53

To work. The. First

32:55

month you suck at this because you've

32:57

never done it. The first time you

33:00

drove your car around the block, you

33:02

weren't good at it. Okay,

33:05

But now you drive a car without thinking, put

33:07

on your makeup either Big Mac and change lanes.

33:10

right? Okay, that's what

33:12

you'll get to later. But.

33:14

Right now your brand new at this and

33:16

one of the things that happens when your

33:18

brand new and your first month of budgeting

33:21

as you leave things out. That.

33:23

You shouldn't have left out you just

33:25

didn't know you forgot about on a

33:27

case kids activities at school. We didn't

33:29

budget for it because we forgot they

33:31

do that. Of course they do that

33:33

but when it comes up it's kind

33:35

of obvious but it were sitting down

33:37

on piece of paper or sitting down

33:39

with the every dollar up. We didn't

33:41

think of it. Okay lawyers a different

33:43

category but subscriptions I forgot about him.

33:46

And then when I would the no one of the

33:48

my budget the first month I looked them are robbed

33:51

the money out of my food budgets and so now

33:53

I'm crashing over here and will you won't forget about

33:55

on the next month you're either gonna cancel them are

33:57

put him in the budget right? Here.

34:00

activities. We're either going to not let them go or we're going

34:02

to put them in the budget, right? Yes.

34:05

What's another one?

34:08

But some of these things, you have

34:11

fewer and fewer surprises the

34:13

longer you do this because you

34:16

get better at it and all

34:18

the other surprises are now in

34:20

the budget. Okay. After 90 days. So

34:22

after 90 days, you'll be a budgeting pro.

34:24

It takes three months. First month is really

34:26

bad. Second month is a little better. And

34:28

the last month you've got it dialed in.

34:30

Now, lawyer stuff, that is a legitimate, you

34:32

know, that's like the transmission falling out of

34:35

your car. That is an emergency you couldn't

34:37

see coming and you don't have any money,

34:39

right? Correct. Okay.

34:41

All right. So that's a different thing. And

34:44

that's not really a surprise because we knew

34:46

the X was a jerk. That's why he's

34:49

called the X. But

34:51

overall, the lawyer bill is a surprise.

34:54

Yes. Okay. So there's some

34:57

things like that. But okay,

34:59

let me give you an example. A

35:02

car breaking down is

35:05

not a surprise. You know, a $200 alternator going

35:07

out on the car, a

35:10

$400 alternator going out on the car. It's not a

35:12

surprise. It absolutely is

35:14

going to happen. It's

35:16

just a matter of when. The only thing that

35:19

surprises the timing. We know

35:21

the tires on your car are going to

35:23

wear out. We know Christmas is in December.

35:25

They don't move it. It's not a surprise,

35:27

but it still sneaks up on people. So

35:30

that's the kind of stuff I think you're, okay,

35:34

number one, recommit to beans

35:38

and rice, rice and beans. No eating out. No

35:40

going out to eat. No vacations. We're

35:42

going to put a bunch of stuff on Craigslist

35:44

and sell it, try to create some money. We

35:46

may look at some extra income from doing some

35:48

kind of side job. And we're going to be

35:51

really, really, really, really, really focused on this and

35:53

get the every dollar app out and get the

35:55

budget going. Cause it's got a lot of categories

35:57

that'll remind you of things you might otherwise have

35:59

forgotten. if you were just using a yellow

36:01

pad to do this. Yeah.

36:04

Okay. But also give

36:06

yourself a little grace. It does take three months

36:08

to get good at it. No

36:11

one does it the first month perfectly. There's no

36:13

one that nerdy. If they were that nerdy,

36:15

they were already doing it. All

36:18

right, Kimberly, I want to ask Dave a question, but I'm

36:20

going to use you as an example. Is that cool? Sure.

36:24

So Dave, here's a concern

36:27

I have across the board, and

36:29

that is you make your first budget or

36:31

your second budget, and then you've

36:33

committed to living a debt-free life, and then a

36:36

$3,000 expense pops up.

36:38

That's pretty high, so let's say a $600 expense

36:40

pops up. You're

36:43

going to have to go into those other categories

36:45

if you're going to stay committed, and you're

36:47

going to – okay, we're going to have to figure out how to do groceries for 75 bucks

36:50

instead of 125. Yeah. down.

36:54

We're going to have to – or up. We're going to have to – Well,

36:57

normally – no, you're probably going to go pick up a job. Or

36:59

go get a second job. But this idea is like, no, no,

37:01

no, we're going to go out to eat once a month. We're

37:03

just going to overdraft. What I don't want

37:05

us to ever lose sight of is if

37:08

something happens, something happens. You have to – if

37:10

the wind changes, you have to adjust the sails.

37:12

It's uncomfortable. It stinks. It's not what

37:14

we planned, but it is. Yeah. It's a

37:16

reality. No, I shouldn't say if. When

37:19

the wind changes, adjust your sails. Because

37:21

there's going to be stuff that's unexpected come at you, and then you go,

37:23

okay, how are we going to handle this? So like

37:25

to John's point, Kimberly, one of the things

37:27

Sharon and I did that we've had to

37:30

teach other people to do, but it came

37:32

natural to us, we were bankrupt. No

37:34

one would loan us money. So

37:37

we didn't have an option. We don't borrow money, but

37:39

we also can't borrow money at

37:41

that time, right? So we had

37:43

to figure it out without debt. So

37:46

we had to figure out, I've got to put something on

37:50

Craigslist and sell it. I've got to go work a

37:52

side gig, and I need some money

37:54

by Friday. Oh my God.

37:57

So we had to – anytime something came up.

37:59

that hit us right square in the nose,

38:02

we had to figure out increase income and

38:04

sell something and decrease some of

38:06

the categories temporarily until we can get around the corner

38:09

of this. We didn't have a choice.

38:11

And so what our encouragement is to

38:13

take overdraft, which is a form of

38:16

debt, off the table. Disconnect

38:19

overdraft. And quit. Never

38:21

ever ever let something come

38:23

out of your account that causes overdraft again. Ever again.

38:27

It's like you're running a company for someone else and if you

38:29

ran it this poorly, they would fire you. Okay.

38:33

And it just creates a sense of fire

38:35

and urgency. Yeah. There's

38:37

this absolute, you

38:40

know, absoluteness, that's not a

38:42

word to this idea. You

38:45

don't have an option. And when you kind

38:47

of, when you burn the boats and you can't leave,

38:49

you've got to deal with what's in front of you.

38:51

You'll innovate and figure it out. Exactly. You've

38:54

got to innovate, you've got to adjust the sales. So you're

38:56

better at this than you think you are and what you're

38:58

facing, the distress and the frustration

39:00

and it was kind of knocking the confidence out

39:02

of you. Like this may not work. I may

39:05

not be able to do this. You can do

39:07

it. You can do it. What

39:09

you're feeling, the emotion you're feeling

39:11

and the actual experience

39:14

you're having is very normal. The trick

39:16

is don't agree to live in it.

39:19

Make adjustments so you don't live that way. Okay?

39:22

Okay. You can do this. Yeah.

39:25

Have you guys been through Financial Peace University? We

39:28

have not yet. Oh, you need to go through. I'll give it

39:30

to you. You got to go through it. Yeah.

39:33

I'll give it to you and I'll give you the every

39:35

dollar app with connecting to the budget to the upgrade, the

39:37

premium. So you've got the whole kit. If

39:40

you'll go do this stuff that I teach

39:42

you, it'll work, Kimberly, a hundred percent. But

39:45

it never works instantly. We don't sell microwaves.

39:47

We're in the crock pot business. It

39:49

takes a minute. You got to cook it, baby. You can do

39:52

it. You can do it. the

40:00

ramsy solution and

40:09

create actual amazing

40:11

relationship i'm day

40:13

for an easier host dr john deloni

40:15

number one best-selling author posted a doctor

40:17

john deloni show on the ramsey network one

40:19

of the more popular you tube and podcasts

40:22

in america today he's my

40:24

co-host open phones a triple eight

40:26

eight two five five two two

40:28

five jennifer is with

40:30

us in san antonio texas i'd

40:32

jennifer welcome to the ramsey show thanks

40:36

for speaking with me today

40:39

true com i'm really

40:41

appreciate it as i love you days but

40:43

i think my question probably a little more

40:45

for john so not like her your ego

40:48

or anything but i have and

40:50

he's got to be a few days i just have one

40:52

of my own is in but in

40:55

his ego trust me it's doing just fine haha

41:00

sorry my bad i just i was like

41:02

i never thought i called a ramsey show

41:04

and then not wanna like totally focused on

41:06

day of ramsey and papa day you know

41:08

so sweet you're also personally your sweet how

41:11

can we help with a i'll be okay

41:13

i've been john hill what's up uh...

41:16

i'm calling because uh... so

41:18

i had a bankruptcy in twenty twenty

41:20

one and you know i'm debt-free and

41:23

well i'm debt-free after you know

41:25

paying uh... the kgp i mean

41:27

i r f and

41:29

uh... and then i

41:31

was one of the very few that had

41:33

their public service but you know i work

41:35

for the federal government and i was one

41:38

of the very few that had their loans

41:40

forgiven i've worked for the federal government for

41:42

thirteen years and i feel like

41:44

a lot of shame i

41:46

feel ashamed but the bankruptcy but then i also

41:48

feel a lot of shame about this public

41:51

service forgiveness

41:54

in a way because i can i

41:56

mean i took advantage of the program that was available to

41:58

me and i like I'm

42:00

proud of serving the government so long, but

42:02

I guess I feel a little,

42:04

I don't know, I tell people

42:07

not to count on it all the time

42:09

and that all the data shows that very

42:11

few people are ever going to have it

42:13

happen to them and don't want them to

42:15

count on it. I just happen to be

42:18

in that window where it works for me.

42:20

And so it's like I won the lottery,

42:22

but I'm like ashamed that I won it

42:24

a little bit. Yeah, so Jennifer, Jennifer, I'm

42:26

actually going to change direction a little bit.

42:31

Is that okay? Okay.

42:33

When it comes to shame, I can talk about it

42:35

all day long. But

42:37

lucky for you, you

42:40

call the number where there's more than just academic

42:43

answers. I actually

42:45

think the person you talked to is Dave. He's been there. Okay.

42:49

Well, see, what do I know? The guy with the PhD doesn't know.

42:53

I can talk about it, but Dave can talk

42:56

through a lived experience, which is much more valuable.

42:58

So what caused your bankruptcy? I

43:02

made good money, but I

43:04

have a disability and

43:06

I was only

43:09

going to work like two weeks a

43:11

month after my brother died. The disability became

43:14

so extreme. All these medical issues that had

43:16

come up. So even though I was following

43:18

the Dave Ramsey plan, like, what's

43:20

the nature of your disability,

43:23

honey? I

43:25

have major depressive disorder. And

43:28

after my brother died, I became

43:31

like suicidal and it

43:33

was really strange. And

43:35

so, and you had debts that you couldn't

43:39

pay because of that. Yes.

43:42

I was making bare minimum payments. And

43:44

then I went to the bishop to

43:46

even get help. So for a year,

43:48

about 18 months, the bishop and I

43:50

literally sat down at my church like

43:52

every month, like, how can we dig

43:54

you out of this hole? But the

43:56

medical bills were still so high that

43:58

I still couldn't. Even

44:00

though I had this big shovel, the medical bills

44:02

just kept coming and then I couldn't, I

44:05

was really struggling to work over and over.

44:07

Hey, give me a favor Jennifer. Yeah.

44:10

You take a real, real, real deep breath as

44:12

deep as you can. Okay, sorry. Take it

44:14

super deep and I want you to hold it for three, two,

44:18

exhale. There's

44:22

a lot of people in the world that are giving you a

44:24

lot of advice and running their mouth and telling you you should

44:26

be doing this and Dave and I are not going to

44:28

do that. We're sitting here with you, okay? Okay.

44:31

You don't have to, I can hear you trying to

44:33

outrun the shame in a circle right on the

44:35

phone with us. You don't have to do that. Okay.

44:39

Okay? Here's the thing. We're with you. When

44:42

I filed bankruptcy at

44:44

28 years old, the

44:46

reason for my bankruptcy was

44:50

I had borrowed too much

44:52

money. I had borrowed

44:54

it in such a way that it

44:56

allowed the banks to come and take my freaking

44:59

head off. Yes.

45:01

It was my fault. I

45:03

don't think a

45:05

person who has issues

45:08

with depression becoming

45:10

depressed after the loss of their brother

45:13

is something you did wrong. So

45:18

my actions were shameful. Your actions

45:20

were not shameful. Well,

45:22

I feel like the debt actions were shameful

45:24

that I put myself in such a bad

45:26

position. You were vulnerable because

45:29

of that, but you probably would

45:31

have made it without bankruptcy if you hadn't

45:33

been unable to work for a period of

45:36

time. Yeah. The Bishop

45:38

said that. Actually, when we sat down,

45:40

I mean every month he's like, if

45:42

you weren't so sick now, I think he

45:44

could help you. Like he was helping

45:47

me even with rent, you know? At

45:49

one point he said, you know,

45:51

pausing, because we're stewards of the

45:53

Lord's money. He's like, this is

45:55

a handout, not a hammock. But

45:58

every month I see that you're putting... everything

46:00

you can into pain,

46:04

but I think this might be our

46:06

only way out. Okay, so let me ask you

46:08

this. It's

46:11

obviously the loss of your brother,

46:13

that tragedy is in the rearview mirror. Are

46:16

you doing things to deal with the

46:18

depression issues? Yes, I

46:20

see. My birthday's in Italy. So what

46:22

I did in my case was, in

46:25

my case was, I did some things to

46:27

deal with my stupidity. And

46:30

so I'm not going to make the same mistakes again,

46:32

and therefore I

46:34

don't have to sit and be wringing

46:36

my hands about the shame of

46:39

the bankruptcy. The bankruptcy in my case was

46:41

caused by me. So

46:44

there was shame. There was shame inducing for sure. But

46:47

the way I dealt with it, to answer your question,

46:50

was I said, okay, what

46:52

steps do I have to take to be

46:54

a different person that causes this to never

46:56

happen again? If I take those steps, then

46:59

the things in my rearview mirror, it's just one of the

47:01

many stupid things I've done in my life that I don't

47:03

have to do again. Yeah.

47:05

And Jennifer, can we agree that

47:08

sometimes you feel things and those feelings aren't

47:10

true? Yes,

47:12

that is true. I know that to be said. I know

47:14

that tells me that all the time. I know, but listen.

47:16

Well, not all the time, but it does come up. Here's

47:18

what you're going to do. I want you to keep a

47:20

journal with you of the things you feel. When you feel

47:22

like you're taking advantage of folks, and you feel like you

47:24

should have a journal, I want you to write that down,

47:26

and I want you to hold it at arm's length and

47:28

ask yourself, is this true? Okay.

47:31

And I want you to be objective about it, because if

47:33

you can't be objective, take it to your counselor and

47:37

say, is this true? Because the answer is

47:39

going to be no. But when you have a

47:41

feeling and you begin to believe that feeling, then

47:43

your body's off to the races. Yeah.

47:46

Zero shame for

47:48

the student loan forgiveness. No. And

47:51

the shame on the, any part

47:53

you had with irresponsibility,

47:55

you say, I'm not doing that

47:57

anymore. Any part you had with taking

47:59

on. too much debt. I'm not doing that

48:01

anymore. But the depression taking you away from

48:04

work, I'm not

48:06

blaming you for that one, kiddo. That

48:08

one's in your rearview mirror too, though. The

48:10

beautiful thing about life is the rearview mirror

48:12

is smaller than the windshield. That's

48:15

called grace. Walk in that, kiddo.

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49:03

John Deloni, Ramsey personality is my

49:05

co-host today. Ryan is in Chicago.

49:07

Hey, Ryan, how are you? I'm

49:10

doing good. How about yourself? Better than I

49:12

deserve. What's up? So

49:15

I was just calling because I've

49:17

recently gotten some good news. I'm

49:19

having a baby on the way. Very,

49:21

very excited for it. But

49:24

I just moved back up north. I was

49:27

living in Louisiana for a while and

49:30

I just got a job up here. I just

49:32

do sales and she is talking about

49:36

moving to Louisiana because that's where

49:38

her family lives. And obviously,

49:41

you know, I'm not going to... What

49:44

do you mean? She's moving

49:46

to Louisiana and you're in Chicago. Or not to

49:48

Louisiana. It's a Tennessee. I apologize. Why is she

49:50

moving and you're not? I don't understand. What's going

49:52

on? So we're a little longer together.

49:56

Oh! And yeah,

49:58

yeah. So... Lead with that next

50:00

time, dude. That's a big part of the

50:03

story. For

50:05

a minute, I thought we were a happy little family with

50:07

a picket fence. Okay. No, not

50:09

quite yet. Not even. No, not even close.

50:11

So you hooked up with your ex. She's

50:13

pregnant. So who, your ex-wife or girlfriend? Oh,

50:16

girlfriend. Girlfriend. Okay. How

50:19

long ago did you break up? In quote. About

50:21

a month ago, almost three weeks to a month. We

50:25

still talk every day. We're on, you know, we're on good terms

50:27

and all that sort of good stuff, which is what I, you

50:29

know, which is what I want. You know,

50:31

if we are going to be separated, I'd still want to,

50:34

you know, be, you know, what's your question and all

50:36

that good jazz. So I just had

50:38

a lot of questions as far as moving down to

50:40

Tennessee because they did, she did ask me, uh, or

50:43

she was interested in me doing that so I can

50:45

be closer to them. And I just had a lot

50:48

of questions about, you know, budgeting with the baby and

50:50

doing just like, oh, this, you know, trying

50:53

to find a house down there. And how

50:55

would you, how would you, how would you

50:57

go through that? I don't, I don't have very

50:59

much that I have like $500 on my credit

51:01

card debt and that's pretty much it. Um,

51:04

so then that's getting paid off.

51:06

Uh, so luckily I'm about to be

51:08

out of debt, which is a very good feeling, but how

51:10

long have you known about this? What

51:14

was that? How long have you known about this? Uh,

51:17

we found out, um, we found out.

51:19

No, I don't know. We didn't, she

51:21

did. And then when did she tell

51:23

you you're not together? Yeah.

51:26

December when we were living in Louisiana and then

51:28

we moved back up, we were together still. Uh,

51:31

and then we just recently, we just recently

51:34

separated. So

51:36

you're confusing me because

51:39

I think you're so jumbled up. So are

51:41

you telling me you knew she was pregnant

51:43

before you broke up? Yes.

51:46

Yeah. Yeah. It's

51:48

been a, it's been a mutual breakup. So it's not

51:50

been like any, any sort of, so you didn't recently

51:52

find out you were pregnant and get this good news.

51:55

That's what you led with. It wasn't the truth. Uh,

51:57

you knew she was pregnant and you broke up. Whether

52:00

that way when you break up with her. Arm.

52:03

A we just we this are utilize. It

52:05

was a lot of the back and forth

52:08

and. So. He Ireland. Here's the

52:10

deal. This. Woman

52:12

is going to be in your license for.

52:15

The rest of your life. Vests

52:17

and so whether you get back

52:19

with are not. Ah,

52:21

I'm. It sounds like there's a

52:23

lot a yellow and where are we just aren't? do

52:25

you're. You. Gotta be past that.

52:28

Now you brought your brain a human

52:30

into the world. Yeah I would get

52:32

was a relationship cancer Asap. Because.

52:34

You're gonna have to learn to talk

52:36

to communicate to use sake. You think

52:38

being together and raises gets hard during

52:40

tried to it and separate houses it's

52:43

gonna be chaos hard hard hard part.

52:46

In the fact that you haven't already moved on even

52:48

know what we're talking about here. Are

52:51

my daughter has been gone. For

52:53

four days, five days and I'm having trouble

52:55

breathing. I don't like Aca. I can't wrap

52:57

my head around your thought process. Now.

53:00

So that that's where I was. so I'm

53:02

gonna, I'm gonna move down there with them

53:05

on. That. In their gun deaths.

53:07

Gonna be doing that? No, not with them. You're broke

53:09

up. You. Made a big what am I broke

53:11

up. I are gonna move your but down here by

53:13

this child and you're going to work to support her

53:15

nearly with around. The town of well

53:18

I live the Ama live near them. That way

53:20

we can. We. Can you know? raise the

53:22

baby back? There is not even near them. It's.

53:24

Near the baby is a baby. You broke up. Yeah,

53:26

And. You are playing dating still on the phone. That's

53:29

why don't think Geller done as a go Acted

53:31

in materially and things got stressful and you to

53:33

split up your pretty much everything you've done has

53:35

been a impulse decision. All.

53:37

Of these as as have been impulse the

53:39

moves. The. Pregnancies, This, the

53:41

sacking up, the breaking up,

53:44

the moving to Nashville or

53:46

Tennessee A You guys make

53:48

decisions about every thirty seconds.

53:51

And us and that. That's not good for

53:53

your finances, but it's fine until you decide

53:55

to bring human into the work. It's not

53:57

good, Period. You never make good decisions as.

54:00

You'll. Need a slow it down? Slow

54:03

your roll. Slowdown.

54:05

These are big boy big girl deals is

54:07

chance you're breaking up with someone that you

54:09

have a baby with is a big deal.

54:12

When. We're arguing. Oh gimme a break

54:15

up. Made Forty three years. Were

54:17

arguing is an ongoing. Always

54:21

going to say but I've been

54:23

in a room with several. success.

54:26

Of were arguing me. She told me what

54:28

to do and I didn't do it. Why?

54:30

meant that was today. He assess, assess, assess

54:32

that. But this idea, that sounds worse. You

54:34

break up because we're arguing. You're going argue

54:36

the rest your life because you're raising a

54:38

human together and so figuring out how are

54:40

going to communicate even if you going the

54:42

room and we're done romantically. Organiser gotta do

54:45

this. Ah, I'm. A least give

54:47

it a shot. For. The sake

54:49

of his get all the data suggests your have

54:51

to be working together for this kid the to

54:53

have a shot him. So

54:55

yes and were together with you to move

54:57

into Tennessee. but I wanted to ghost both

54:59

of you. To. Make slower.

55:02

Huge decisions. That good decision making

55:05

paradigm. Is this the more

55:07

important the decision. The. More

55:09

information you need about the decision.

55:12

And. The.

55:14

Longer time you should take making

55:17

the decision. You've. Done

55:19

that. The. Opposite on all

55:21

of these fronts. That's.

55:23

What's killing me here So you can

55:25

impulse a pack of gum? Driven.

55:28

By a car is slow down

55:30

and take your time. So lot

55:32

of money. Okay,

55:35

I if you're going to choose you to

55:37

your impulse or lock and across a room

55:39

and talking to a girl year you know,

55:42

impulse breaking up with a girl who's got

55:44

your child inside. Ever. Or think it this

55:46

way because of some arguments use decided I

55:48

want my child to have a single mom.

55:52

I'm going to be very careful about that decision.

55:56

Who. Very careful. Now.

56:00

Picking up picking on you, but we love

56:02

you and we want you to win and we're

56:04

observing the patterns There and

56:06

once your baby, and if you don't break

56:08

those patterns you're going to replicate them And

56:11

that's what I want for you, and I want

56:13

that for your babies as well Yeah, the most

56:15

positive thing you said in the entire conversation is

56:17

how excited you are about the baby as you

56:19

should be and that's wonderful That's good news for

56:21

the baby and good news for you. It means

56:23

you're a good man, so work

56:26

through these Slowing

56:28

down on big decisions and

56:31

so you know before you decide to move to Tennessee

56:33

and chase her You

56:35

probably ought to go meet with her and

56:37

a good relationship counselor Talk

56:40

about what it looks like if you made the move

56:42

here I'm gonna give you a three months of free

56:44

better help with a licensed marriage therapist life relationship therapist

56:46

They'll talk to you guys so hang on the line

56:49

here We'll get you hooked up with that there

56:51

we go and then y'all could talk from different states even if you

56:53

need to yeah I think

56:55

you probably do need to go to Tennessee, but I think

56:58

you should do it in a different context In

57:01

the sense of you ought to have made the

57:03

decision. I've got a good job Move

57:05

when I make the move. I'm not just gonna go down there and hope hope

57:08

it works out I got a place already. I got

57:10

a place figured out. I've got a set of relational

57:14

boundaries and rules Involved

57:16

with this ex-girlfriend And

57:19

how we're gonna work on the child what are what

57:21

are the financial implications? How much are you gonna child

57:23

support? What are those kinds of things all of this

57:25

ought to be you ought to have all that figured

57:28

out before you move And

57:30

it might take you a month to figure that out and

57:32

you got a month so slow

57:36

down on big

57:38

decisions Get more information

57:40

and more information and more information you've

57:42

got all your information stacked up, and

57:44

you go slowly We

57:46

call that wisdom It's

57:48

the opposite of impulsive This

57:52

is the Ramsey show Dr..

57:59

John Deloni Ramsey Ramsey Personality is

58:01

my co-host today, Open Phones,

58:03

in the lobby of Ramsey

58:05

Solutions on the debt free

58:07

stage. Nathan and Danielle are

58:09

with us. Hey guys, how are you? We're

58:11

great Dave, good to be with you guys.

58:13

You too. So where do you

58:16

live? Arlington Heights, Illinois. Ah,

58:18

Chicagoland. Alright welcome to

58:21

Nashville and how much debt have you paid off? We've

58:24

paid off about $130,000 in debt. Very

58:27

good and how long did that take? Six years. Six

58:29

years and your range of income during that

58:32

time? We started at about $40,000. We

58:35

were bumped up to, what was it, $130,000? $132,000

58:40

and then actually about a week and a half that's

58:42

going to jump to about $160,000. Okay,

58:44

that's pretty impressive you guys. I

58:47

mean $40,000 to $60,000 is pretty

58:49

cool. $40,000 to $160,000. So

58:53

what happened to your careers? What do you all

58:55

do for a living? A lot of extra Uber

58:57

man. Now they bought Uber.

58:59

I mean I know. Uber

59:02

at Lyft was part of that for about six months but it

59:05

started out, I graduated from grad

59:08

school, we got married six months prior to

59:10

that. What's your degree? Originally I

59:12

had a degree in athletic training which

59:15

is similar to physical therapy for people that don't

59:17

know but more college setting, high school setting, things

59:19

like that. At some

59:22

point a couple of years into that I

59:24

was thinking about the career, thinking about we're

59:27

going to have kids one day and I was

59:29

doing a lot of traveling on weekends with football

59:31

teams and things like that and wanted to,

59:33

I was thinking about the

59:36

time we'll potentially lose with kids when we had

59:38

them and so I started looking into a

59:40

career change. Fast forward, we

59:42

cash flowed a, I got my MBA

59:44

online, graduated in the end of 2020

59:47

and then maybe

59:50

nine months later or so, made a

59:52

career change into third party risk. I

59:54

was working and which is what I

59:56

do now. Okay, cool. And

59:59

what do you do Daniel? I am a paralegal in

1:00:01

a class action law firm. Wow, good

1:00:03

for y'all. Okay, great careers. Quite

1:00:05

a trek. How

1:00:07

long have you been married? Seven years. Seven years.

1:00:10

So one year into the marriage,

1:00:12

you start this process, and you go on

1:00:14

this journey on his career track, which

1:00:17

leads you into much, much higher incomes over time.

1:00:19

What kind of debt was the 130? Guilty

1:00:22

as charged on that one. That would be all my student

1:00:25

loans and a little bit of medical debt. I

1:00:27

hadn't charged you. The

1:00:31

paralegal, huh? Yeah. Okay, all right. I'll

1:00:34

go with that. Cool. So what happened

1:00:36

after a year of marriage that you said, we're going to

1:00:38

get out and we're going to do this Ramsey stuff. How

1:00:40

did you meet us? So about

1:00:43

five to six months into our marriage,

1:00:45

my grandma ended up passing away, and

1:00:47

she left me a amount of

1:00:50

money that was equivalent to pay off

1:00:52

my first two federal student loans. And

1:00:54

we had run the total money makeover,

1:00:57

and we're like, we can do this. Let's go. Let's

1:00:59

get Gazzal and Tents on. Let's pay this off. And

1:01:01

we did. And

1:01:03

we had read the book, my spring break

1:01:05

of my last year of grad school. It

1:01:08

was a wedding gift, actually. And we just kind of

1:01:10

sat on the shelves like, yeah, we're a bunch of

1:01:13

poor college students. Like, well, you know, living on, I

1:01:15

don't know, it was maybe less than $1,500 a month,

1:01:17

if that, you know, maybe $1,200. And

1:01:20

read it over spring break and was thinking

1:01:22

towards, you know, we'll finally get real jobs,

1:01:25

real income. And it was like, hey, this

1:01:27

seems like something that's pretty feasible. You know,

1:01:29

yeah, that was kind of what

1:01:32

happened. Got after it then. Knocked it out.

1:01:34

You know, we are six years later, you

1:01:36

know, making serious bank and no payments in

1:01:38

the world. When did y'all

1:01:40

start dressing exactly like in public? So,

1:01:43

this started early on in marriage, John. So

1:01:45

I've been forcing him to dress similar to

1:01:47

me ever since. You're a good husband, man.

1:01:49

Well, no, here's a picture over here. They're

1:01:51

doing it too. No, I saw it. You're

1:01:53

a good husband, man. Well done. Yeah. That

1:01:55

was a good photo there. This

1:01:58

past, you know, past Christmas times. What

1:02:01

was the biggest challenge you'll face internally, the

1:02:03

ones behind closed doors that you don't talk about? Right,

1:02:05

yeah. I know I'll tell everybody on the radio.

1:02:08

Probably I don't know if there's one specific one, but

1:02:10

just, you know, we like, I'm sure so many other

1:02:13

people, it felt like after about

1:02:15

two years into it, it's like, you know, we're trying

1:02:17

to grind through this and, and

1:02:19

we'd start getting that, you know, it was

1:02:21

like almost fatigued from it. Sometimes

1:02:24

she would feel that way, sometimes I'd feel that way. And I was like, so

1:02:26

we're trying to kind of pull, you know, pull and

1:02:28

push each other along and say, no, like we gotta stick with

1:02:30

the plan. It's going to be okay, you know. And

1:02:33

fortunately we sometimes kicking

1:02:35

and screaming sometimes less so, but you know, fortunately we

1:02:38

were able to stick to the plan. Yeah,

1:02:40

absolutely. And I think the other thing too is about

1:02:43

four years into our marriage, we tried

1:02:45

starting a family and unfortunately just we

1:02:48

went through the wilderness of infertility

1:02:50

and infertility is not for, I wouldn't

1:02:53

wish on anybody. Amen. And

1:02:56

we're trying to struggle with that cash load

1:02:58

dose treatments and then going through three rounds

1:03:00

of unsuccessful fertility treatments that really

1:03:03

tried and tested us, so we

1:03:05

remain faithful. We remain, we said,

1:03:07

God, you've got this, you've got us. We're going to keep

1:03:09

trusting you. And we just kept pushing forward. And

1:03:12

I hear that little screaming in the

1:03:14

background. Yeah. Yeah, that was a, so

1:03:16

it worked. Yeah. No,

1:03:18

actually it didn't. Oh, all right. Tell us about

1:03:21

that story. So it

1:03:23

was our third round of IUI had failed. It

1:03:25

was the Friday after we had that news. I

1:03:27

was sitting on my kitchen floor sobbing, asking God

1:03:30

why. And then I told him, you know what,

1:03:32

Lord, I'm done. I'm going to be done. I'm

1:03:34

giving this to you. Let's focus on other things.

1:03:36

Let's keep paying off the debt. Two

1:03:38

and a half months later, find out we're pregnant. Of

1:03:41

course. Yep. Of course.

1:03:44

I love it. Wow. That's

1:03:46

so cool. Congratulations. Thank you. Thanks.

1:03:50

Proud for y'all. Five years. Yeah.

1:03:53

Yeah. Wow. Very

1:03:55

cool. Congratulations. All right. don't

1:04:00

you ever give up, don't ever give up.

1:04:02

Keep pushing forward, seek counsel when you need

1:04:04

it, seek help from your church leaders when

1:04:06

you need it, don't be afraid to reach out

1:04:08

for help. I think about

1:04:10

too that, you know, we certainly weren't

1:04:12

perfect at it. We'd had, you know, a

1:04:15

month here or there periodically, whereas like, you know,

1:04:17

maybe the budget got blown up by something or

1:04:19

maybe we just, you know, you

1:04:22

know, had a lapse in judgment, maybe, you know, spent $100 here

1:04:24

or something like that. And it was like, yeah, you know, looking

1:04:26

back on it, that was a mistake. But,

1:04:28

you know, don't let those things, you

1:04:30

know, don't let those things get you down, don't let them

1:04:33

take you out of it. So just get back on track

1:04:35

and keep pushing. Back on the wagon, back

1:04:37

on the wagon. Absolutely. I like it, I like it.

1:04:39

Well, congratulations you two. Thank you. And

1:04:42

the little one's name is what? Eliana. Eliana.

1:04:44

So is Eliana gonna be in the debt

1:04:46

free screen? She will. All right,

1:04:48

well, we've got the every dollar subscription for

1:04:50

you guys for a one year, we've got

1:04:52

two of them actually, two one year subscriptions,

1:04:55

one for you and one for you to

1:04:57

give away. So we'll get that to you.

1:04:59

Oh, she's precious. Oh, thank you. Oh, goodness

1:05:01

gracious. So cute. Thank you. That's fun. And

1:05:04

for the listener, she's wearing the same color

1:05:06

shirt, mom. There

1:05:09

you go. Just to be sure we noticed that.

1:05:11

Oh, love it. Way to go, you guys. So

1:05:13

proud of you. Thank you. You're

1:05:15

heroes. Thanks. life

1:05:18

because of you two. Well done. Very

1:05:20

well done. All right, it's

1:05:22

Nathan and Danielle and Eliana from

1:05:24

the Chicago land area. 130,000 in

1:05:27

student loans paid off in six years,

1:05:29

making 40 to 160. Count

1:05:33

it down. Let's hear a debt free

1:05:35

scream. Three, two,

1:05:37

one. We're debt free. Yeah.

1:05:46

Yeah. That's how it's done. Well,

1:05:49

she wasn't even scared. No, I think she's heard

1:05:51

mama do that several times. In

1:05:54

the practice room. That's right. I've been practicing. I

1:05:56

like it. Good stuff. Very

1:05:58

cool. One

1:06:01

of the things that we see, I mean if you

1:06:03

get out of debt in six months, you know, you

1:06:05

don't have this, but if you get out of debt

1:06:07

and it takes you three years or four years or

1:06:09

five years or in this case six years, you

1:06:12

can almost be guaranteed that during your

1:06:14

debt-free journey you're also going to have

1:06:16

a life event

1:06:19

or six. There's always going

1:06:21

to be something, you know, in

1:06:24

their case they were dealing with infertility and

1:06:26

having a baby. I had a debt-free

1:06:28

screamer on yesterday, had two children during

1:06:30

the time they were getting out of

1:06:33

debt. That's big life events. It's not

1:06:35

like this stuff happens in a vacuum

1:06:37

because if you could just sit and do nothing

1:06:39

but this in a monastery, you know,

1:06:41

I mean, and there was no... You get

1:06:43

it done. Life doesn't stop. There's all this

1:06:46

other stuff coming at you too which does

1:06:48

require you to have that tenacity, that perseverance,

1:06:51

you know. It's

1:06:53

wonderful that you can walk

1:06:55

through all of that at the same time.

1:06:57

That's the proof text. That's when you know

1:06:59

you got it. This is

1:07:02

The Ramsey Show. Listen,

1:07:06

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1:07:35

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1:07:38

let's face it, taxes are confusing

1:07:40

and they piss me off. I

1:07:43

don't like paying them. I don't want

1:07:45

to do it. I don't like this time of

1:07:47

year. And then you get all these people in

1:07:49

the tax business around you. You guys are not

1:07:51

around me, but I got rid of them a

1:07:53

long time ago, but they're trying to sell you.

1:07:56

But you know, if you don't use our software,

1:07:58

we could sell you 14 credit. cards

1:08:00

and a cash advance on your

1:08:02

refund. Oh my god, they're just

1:08:05

debt sellers. They're credit card people that

1:08:08

got a little tax thing waving it in front of you

1:08:10

like you're a bass and you bite

1:08:12

on everything that's shiny. So

1:08:14

don't do that. Go

1:08:16

to www.ramsyolutions.com/tax. Use Ramsey

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1:08:21

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1:08:23

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1:08:25

with it. Leave

1:08:28

tax tip of the day. A

1:08:31

tax refund is not

1:08:33

a bonus. A bonus

1:08:35

is a fund. This is a

1:08:37

refund. A

1:08:40

refund means it's already happened once and

1:08:43

we're refunding it. Means

1:08:45

you already had the money once and

1:08:48

you gave it to the IRS. You

1:08:50

gave them too much more

1:08:53

than you needed to give them in order to cover

1:08:55

your taxes and then they send it back

1:08:57

to you. So in

1:08:59

essence, you have given them too much money

1:09:01

and they send it back to you. So

1:09:04

you have a savings account with the federal

1:09:06

government that pays zero interest and they send

1:09:08

it back to you and you feel, oh

1:09:10

well it makes me, at least I know

1:09:12

I don't owe You're

1:09:17

giving them $250 a month

1:09:19

too much and it makes

1:09:21

you feel good. It doesn't make me feel good. It

1:09:23

makes me feel stupid when I do stuff like that.

1:09:26

So how do you fix this? You

1:09:28

go into your W-2 and you change and

1:09:31

get the right amount taken out. Go

1:09:34

into payroll and have them take the right amount

1:09:36

out. Now what's the right amount? Well if nothing

1:09:38

has changed in your taxes and you've gotten the

1:09:40

same refund for the past four years, just take

1:09:42

that refund amount and take that correct amount out

1:09:44

of your check. $3,000 a year is $250 a month. Simple.

1:09:49

$6,000 a year is $500 a month. $4,800 is $400 a

1:09:51

month. Whatever it is,

1:09:53

have that right amount. If something has changed, you may want

1:09:55

to have one of the tax ELPs run your taxes or

1:09:58

get the Ramsey SmartTech software. taxes, figure

1:10:00

out what your actual tax

1:10:03

bill is and divide that into

1:10:05

your paychecks and tell them to take

1:10:07

that much out. Then you will be

1:10:09

having the proper amount taken out. You

1:10:11

will not owe more than you have

1:10:13

paid in, but you will not have

1:10:15

paid in too much. The

1:10:18

numbers up that it's like 70 something percent

1:10:20

of Americans get a refund. I

1:10:23

like to think of it this way. You

1:10:25

think the government's doing such a bang-up job with

1:10:27

spending that you decided, you know what, I'm gonna

1:10:29

loan you all some money for the year. Interest

1:10:31

free, just on me. That walked me

1:10:35

into Debbie's office and said, I can't,

1:10:37

I can't do it anymore. No, that's

1:10:39

right. Yeah, the DMV is so efficient.

1:10:43

So proud of the work you do. I'm just gonna loan you all money.

1:10:45

Scary! Alright,

1:10:47

our question of the day comes from

1:10:49

Max in Oregon. I have a portfolio

1:10:52

of properties that's worth about three million.

1:10:54

My partner and I recently had a

1:10:56

child, so we'd like to buy a house. I

1:10:59

sold one of my properties for the down

1:11:01

payment and my partner chipped in $5,000, which

1:11:04

wiped out her savings. She

1:11:07

keeps asking me to sell the rest of my investments

1:11:09

so we won't have a mortgage. I

1:11:11

have a feeling she wants this so she doesn't need

1:11:13

to go to work. I feel

1:11:15

stuck and resentful because of the inequality of

1:11:19

our financial contributions. Well,

1:11:25

so this is a relationship that's not gonna work, Dave.

1:11:30

So Max,

1:11:33

it starts with when

1:11:36

you have a partner instead

1:11:40

of a wife. Right. Are

1:11:43

we dating? Are we married? I don't even know. I

1:11:45

don't even know what's going on here. I can't tell.

1:11:47

I can't tell if you're married

1:11:50

and you think it's chic to say partner. Or if

1:11:53

it's a business. You're killing

1:11:57

me. It's a business. Sounds

1:12:00

like. Because. You use the word

1:12:02

partner the you think this is a business

1:12:04

or as the way this verbiage sounds done

1:12:06

It. And so N

1:12:08

n n that if you were

1:12:10

in partnership with. Ah, you

1:12:12

don't. Have. A.

1:12:15

Business Partnership. And.

1:12:17

It was an unequal well. Each of the

1:12:19

parties in the partnership would have things that

1:12:22

they were supposed to bring to the partnerships.

1:12:24

Are both of you going to bring what

1:12:26

you're supposed to bring to the partnerships? Then

1:12:28

if some are not doing that, then a

1:12:31

business partnership you would have. You. Would

1:12:33

have this exact kind of discussion about that, but

1:12:35

before you got your business partners. Hop

1:12:37

leave, discuss what each of you're gonna bring

1:12:40

to the table and what your goals yada

1:12:42

set expectations are ya? have it on that

1:12:44

year he ever hit that you haven't even

1:12:46

gone that far with this but. My.

1:12:48

Point is is our sickening this

1:12:50

sounds. Because it sounds like

1:12:53

a business transaction instead of. Like.

1:12:55

Me and my wife had a child. And

1:12:58

she wants me to pay off our. House.

1:13:01

That we live in and raise

1:13:03

our child. And. I've got a

1:13:05

big old pile of money. And

1:13:08

I'm. Really? Loving my money

1:13:10

more than I love my wife and my

1:13:12

child. In. Seats he chipped

1:13:14

in five thousand bucks and wiped

1:13:16

out of her. Saying last, he

1:13:18

keeps asking like even as a

1:13:21

martyr, you're maggert, a millionaire burrow,

1:13:23

Dude. There's just. Say

1:13:25

to check yourself but you've already rec yourself. Rather

1:13:28

you get a mess. Gonna.

1:13:30

Mess Mans the always as war Yeltsin.

1:13:33

Sorry about that but I'm not. I'm

1:13:35

a you know act. I can't stand

1:13:37

this attitude because it is a attitude

1:13:40

of I for superior to you because

1:13:42

I have some properties. And.

1:13:44

You married a woman, your creative and

1:13:47

will know we're married well what we

1:13:49

might as partners y'all y'all have a

1:13:51

child together and suddenly. Well.

1:13:53

You gotta be Australia a. some

1:13:57

fucked up much as gives me the g

1:13:59

s Dave, Max, you only need to go

1:14:01

see a counselor ASAP. Yeah.

1:14:04

So let me tell you, if I could be

1:14:08

your best friend for a second, your old uncle, ugly

1:14:10

Dave, and put my arm around you, I would say,

1:14:13

love this child and this woman

1:14:16

so well that you marry this woman if you're

1:14:18

not, and that

1:14:20

you make those two your everything, and

1:14:23

you do anything for your everything.

1:14:26

Above your homes and your network. And do

1:14:28

anything for your everything. There you go. And

1:14:31

that means you pay off your stinking house and you make

1:14:33

a home, and you pay cash

1:14:35

for it, and you create an environment where those

1:14:38

two can both prosper because you love them more

1:14:40

than you love life itself, certainly

1:14:43

more than your tiny little portfolio

1:14:45

of $3 million. This

1:14:49

will cause you, my son, to be

1:14:51

80 years old and have no regrets. Worshiping

1:14:55

at the altar of a $3 million

1:14:57

real estate portfolio, meanwhile making your own

1:15:00

wife or should be wife

1:15:02

and child second

1:15:05

fiddle to your stuff will not

1:15:07

lead you to long term happiness.

1:15:09

Period. Easy. Easy.

1:15:12

So that's what we're seeing. And that's

1:15:14

what we were dancing around and being

1:15:16

sarcastic. And we know that

1:15:19

all the crap this poor lady is

1:15:21

feeling. But dude, you really are being

1:15:23

a complete butt because

1:15:25

you are completely worshiping the wrong things

1:15:27

here. You're completely putting the wrong things

1:15:30

in the wrong order. And

1:15:34

when a lady has your

1:15:36

child married or not,

1:15:41

and you are so superior

1:15:43

with your $3 million that

1:15:45

you look down your nose and she paid off

1:15:47

her $5,000. I'm

1:15:50

like, dude, it's just nasty. It's

1:15:53

nasty. So, sorry

1:15:56

you wrote in. Oh

1:16:01

my gosh, but you know

1:16:03

hey, you know I truth is

1:16:05

a secret to happiness is long-term high-quality relationships.

1:16:08

It's not stuff Hello

1:16:12

Period man. I just

1:16:14

find myself overly Empathetic

1:16:17

sometimes you'll give me a hard time off-air, but like

1:16:19

I'm just overly This is one

1:16:21

of the few ones that gets me fired up

1:16:23

when somebody looks and just Well

1:16:26

the problem is is the downstream on it the

1:16:28

problem is You and I know

1:16:30

the data of where this kid ends up

1:16:32

That's right If this if this if Max's

1:16:34

if Max's brain isn't reaching that baby will

1:16:36

be born and really quickly that nervous system

1:16:38

will know Odette's rental properties are more important

1:16:40

than me. Yep, and that's

1:16:43

a recipe for chaos. Yeah, this is how

1:16:45

you end up And

1:16:47

I don't know how little Johnny ended up being

1:16:49

a bank robber. I do This

1:16:52

is the Ramsey show Live

1:16:58

from the headquarters of Ramsey solutions.

1:17:00

It's the Ramsey show where

1:17:02

we help people Build wealth

1:17:05

do work that they love and

1:17:08

create actual amazing Relationships

1:17:12

I'm Dave Ramsey your host dr. John

1:17:14

Deloni host to the dr. John Deloni

1:17:16

show number one best-selling author and Ramsey

1:17:18

Personality is my co-host today Open

1:17:21

phones at triple eight eight two

1:17:23

five five two two five. That's

1:17:25

triple eight eight two five five 225

1:17:30

Matt is with us in Minneapolis. Hi Matt.

1:17:32

Welcome to the Ramsey show Hey,

1:17:35

Dave and John. Thanks for taking my call.

1:17:38

Sure. What's up? I have

1:17:40

a my wife and I had been

1:17:42

a hit three hundred percent house and

1:17:44

everything for five years We

1:17:48

are baby step millionaires And

1:17:51

are currently in the process of gonna

1:17:53

build a new home good for you

1:17:56

Our existing home our Oldest

1:17:58

son is interested combine. It's

1:18:02

worth about three hundred and sixty

1:18:04

five thousand. He

1:18:06

can only afford about two hundred and fifty.

1:18:09

And. I'm wondering your

1:18:12

opinion? guess? You.

1:18:14

Know reagan up a contract and covering

1:18:16

all the a d that he say

1:18:18

like and a partnership. Percentage

1:18:21

of ownership it comes out he

1:18:23

don't Five percent. Mood.

1:18:25

Retain about thirty five percent ownership.

1:18:29

Is that a bad idea?

1:18:31

of? How old is your oldest son?

1:18:35

Twenty four married and and

1:18:37

two grandkids. Bad.

1:18:40

But we do have two other children. Are.

1:18:44

The middle child is already bought his. He bought a

1:18:46

house or what is your Tata Motors? Your total net

1:18:49

worth Me. Ah, one

1:18:51

point to wait and see. I was

1:18:53

gonna try to call yesterday now in

1:18:56

Reno and our our numbers and for

1:18:58

how old are you. I'm.

1:19:01

Forty Seven. And

1:19:03

would you make a year. The

1:19:06

last couple years have been incredible.

1:19:08

I'm an over the road truck

1:19:11

driver, arms completely my own carrier.

1:19:14

And was covered in the

1:19:16

supply chain. I've done. Two.

1:19:19

To three hundred thousand on my own.

1:19:22

Last couple years but. He

1:19:25

had of how and how how's your how and

1:19:27

sixteen i your health. Ah,

1:19:30

good looking or not perfect. but

1:19:32

so if you dollars look let's

1:19:34

pretend you're at one point two

1:19:36

and let's pretend it made ten

1:19:38

percent. Every seven years it would

1:19:40

double. Okay and so

1:19:42

to be two point four when you're

1:19:45

fifty four when you're sixty one it's

1:19:47

a it's are are four point night.

1:19:51

When you're sixty eight. It's.

1:19:54

Ten million. okay

1:19:57

so if you make it to seventy

1:19:59

years old and this money continues to

1:20:01

grow. And some of it's in

1:20:03

real estate and personal homes and those kinds of things,

1:20:05

but it grows in value, right? And

1:20:08

if you continue to invest and if you continue to add

1:20:10

to it on top of that, it's even more, but

1:20:13

you should have five to $10 million at your

1:20:15

death. That's a reason, that's why I was asking

1:20:17

you all those questions. All right.

1:20:20

Um, so what I would do here,

1:20:22

if you're going to do this, um,

1:20:25

I would never do a partnership

1:20:28

ever. Because you

1:20:30

and your son will be just fine, but

1:20:33

this puts a different pressure on your daughter-in-law

1:20:35

that's not fair to her. You've

1:20:39

interfered in their marriage. You

1:20:42

didn't mean to because you're sweet and you love your

1:20:44

grand babies, but you would

1:20:46

don't do that. What I would

1:20:48

do instead is, uh, if you want to

1:20:50

sell him the house for 250 and it's

1:20:53

worth 350, he just got 100,000 less at your death. Okay.

1:21:01

So put that in the will that he gets 100,000

1:21:03

less at your death. Okay.

1:21:06

Now he owns this house. He

1:21:08

has no strings attached. He could

1:21:10

sell it. He can paint it

1:21:12

purple. He can go

1:21:14

on vacation. It's none of your freaking

1:21:17

business. He owns the house. And

1:21:21

all you advanced him was 100,000 of his future

1:21:23

inheritance. Yeah.

1:21:27

Cause that was kind of what we'd

1:21:29

already thought is maybe in five,

1:21:31

10 years they could refinance and buy the rest.

1:21:33

Nope. Nope. I don't want, I don't, I don't

1:21:36

need this. I don't need this monkey on his

1:21:38

back. He's 24 with two kids. Okay.

1:21:42

Okay. And the

1:21:44

other thing is, or the other thing is

1:21:46

we could just say out loud that, that,

1:21:50

um, Papa Dave over here understands

1:21:53

that Papa Matt has

1:21:55

grandkids disease. Cause

1:21:58

when you love your grandbabies, you start doing. stupid

1:22:00

butt stuff for their parents if you're not careful.

1:22:04

And you might have grandkids disease. Because

1:22:09

it's okay if a 24 year old can't do a

1:22:11

$350,000 house. It's

1:22:15

perfectly okay in society. So

1:22:19

no is a possible answer. But

1:22:23

if you want to do it, that's the way to do

1:22:25

it. And I would even say a third option is give

1:22:29

them the grandkid discount. And

1:22:32

just to say I'm going to eat $100,000 in equity of quote

1:22:34

unquote what it is. You got

1:22:36

to pass that on to the two siblings somehow. Yeah.

1:22:39

That's what I was thinking. Yeah, that's my reason

1:22:41

for. Yeah. But yeah,

1:22:43

I do like the idea of writing it in the will.

1:22:45

And we already have a trust. Yep.

1:22:48

And unless you're sick, you're probably going to have several million

1:22:50

dollars. It's not going to be that big a deal for

1:22:53

100,000 of it to be out of his. He

1:22:55

sell this house though and not have any strings attached.

1:22:58

If he wants to plow up the front yard and put corn

1:23:01

in it because he watched a YouTube video. Are

1:23:03

you fine with that? Yes. No,

1:23:06

there was a kind of like that. I was

1:23:08

a stretched. Yes.

1:23:11

You need to be able to come home and realize you got

1:23:13

all the carpet up took all the old he went and bought

1:23:15

a house on his own that had nothing to do with you.

1:23:18

You can leave your hands off of that. Can't you? Yep.

1:23:21

Then you got to leave your hands off this one. Okay.

1:23:25

If you can't do it, don't do it. It's

1:23:28

a stupid butt house. Don't

1:23:30

let this mess up grandpa land. Yeah. It's

1:23:33

not worth your son or your grandkids. Well,

1:23:35

yeah, that's the emotional. We've been there 21 years.

1:23:38

He grew up there. Well, how's the

1:23:40

sisters going to be raising kids? How's the sisters

1:23:42

going to feel? Well,

1:23:47

I said the middle child, they already bought a house. The

1:23:49

youngest. I wasn't what I asked. I

1:23:53

didn't ask you if they were homeless. I asked how they were going to

1:23:55

feel. I

1:23:58

don't know. Yeah. Probably would be some

1:24:00

jealousy there. Yeah, I probably want to talk about it,

1:24:02

make sure everybody's okay with it. This is what we're

1:24:04

thinking about doing, sisters. You

1:24:07

guys cool with that? That's why

1:24:09

we do it at Ramsey's, because we do all kinds of wacky

1:24:11

stuff around the Ramsey's, but we always just say, hey, that's what

1:24:13

we're thinking about doing. How does everybody feel about that? And

1:24:17

sometimes you just put the awkward

1:24:19

crap in the middle of the table. It

1:24:21

diffuses it. I don't

1:24:23

know of a situation, I'm becoming more and more dogmatic

1:24:25

about this, Dave. I don't know of a situation. We're

1:24:27

not just putting it on the table. It

1:24:31

isn't the best way to do it. It's the only way. Yeah.

1:24:34

It's the only way. Unless somebody on the other end is bent

1:24:36

on hurting you, or they don't have the capacity to hear what

1:24:38

you're saying, you got to put it on the table. Well,

1:24:41

even then, I gave them a shot. And

1:24:43

then I could just put up a boundary on the other side. I

1:24:46

gave you a shot at understanding. But

1:24:48

if you know, we lived there 21 years, all our memories

1:24:51

are there. I have that

1:24:53

wallpaper there on purpose. I put that sink in there,

1:24:55

and that's my sink. Not

1:24:57

anymore? Don't do it. Not anymore?

1:25:00

Yeah, you don't own anymore. You can't control freak this.

1:25:02

Yeah. And it'd even be worse if you were a

1:25:05

partner. Probably better if you just don't do the deal at all.

1:25:07

But if you do it, I gave you the mechanical way to

1:25:09

pull it off, and you got to keep your emotional hands off

1:25:12

of it, and the sister's got to be okay. This

1:25:14

is the Ramsey Show. Folks,

1:25:18

changing your family tree takes more

1:25:21

than rice and beans and side

1:25:23

hustles. It's also about transferring the

1:25:25

big financial risks off your family

1:25:27

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1:25:29

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That's ramzysolutions.com/checkup.

1:25:55

Dr. John Deloney, Ramsey Personality, is

1:25:57

my co-host today. matt

1:26:00

wanting to sell on the house at a discount

1:26:02

to his twenty four-year-old son who can't afford a

1:26:04

three hundred fifty thousand dollar house but can afford

1:26:06

a two hundred fifty thousand dollar house

1:26:09

made me think it's good that i did update what's

1:26:11

going on in the real estate world interest

1:26:17

rates started going up and the

1:26:19

market started slowing down dramatically uh...

1:26:22

about fifteen or eighteen months ago

1:26:26

and we did a live stream where i

1:26:28

was very emphatically said the

1:26:30

real estate market is not going to

1:26:32

crash values are not

1:26:34

going to tank and

1:26:37

here's how i know that and i went

1:26:39

through several data points on the air and

1:26:42

we had several hundred thousand of you watch that

1:26:44

live stream and we covered some of that on

1:26:46

the air here to let you know

1:26:48

that the real estate market values were not going to

1:26:50

tank because a whole bunch of

1:26:53

people were really upset that interest rates had

1:26:55

gone up they felt that they that the

1:26:57

system had cheated them and they

1:26:59

were not going to be able to buy a home there

1:27:01

frozen out of the home market and they would sit on

1:27:03

the sidelines and wait on the real estate market to crash

1:27:06

and go down in value and i explained to

1:27:08

you why it was not going to go down

1:27:10

in value and it was a very simple proposition

1:27:13

except i went into great detail and i'm not

1:27:15

going to do right now but basically it works

1:27:17

like this when there

1:27:19

is a shortage of an

1:27:22

item it's called supply demand curve in

1:27:24

economics if you had a

1:27:26

decent economics class in the seventh grade you

1:27:28

learn this the

1:27:31

supply demand curve works like this when

1:27:34

there is an over supply of

1:27:37

an item versus

1:27:39

the demand more

1:27:42

more if you got a lot in

1:27:44

the market if the

1:27:46

more if you can get them anywhere

1:27:48

easily there's not a shortage prices

1:27:52

go down when

1:27:56

there's a shortage of an item or

1:27:59

a service in the market, a scarcity,

1:28:02

prices versus demand,

1:28:04

prices go up. That's

1:28:08

basic economics. Okay,

1:28:11

so items that are scarce

1:28:14

go up more

1:28:17

often than not. Items

1:28:19

that are easily available,

1:28:22

readily available, widely

1:28:24

available, there's too many of them

1:28:26

produced, go down in

1:28:29

value. That makes sense. Everybody

1:28:31

kind of knows that. That's kind of common sense if

1:28:33

you think about it. So here's the deal. There

1:28:38

is less inventory of homes for

1:28:40

sale versus the number of buyers

1:28:43

today than there has been in

1:28:45

25 years. There's

1:28:51

a shortage of housing

1:28:54

versus the demand. Zero

1:28:58

chance prices are going to go

1:29:00

down on houses during that time. I

1:29:02

said that 18 months ago. Told

1:29:04

everybody that. Dave, that that video

1:29:06

is not going to age well after the crash,

1:29:08

you're going to have to come back and tell

1:29:10

people you were wrong. Well, instead,

1:29:13

I'm here going nah, nah, nah, nah, nah, I

1:29:15

freaking know what I'm talking about. Okay,

1:29:17

there's a difference. All right. I know a

1:29:19

little about that stuff. I've got a degree

1:29:21

in real estate. I've been buying real estate

1:29:24

since before any of you were born. So

1:29:27

hardly any of you. So spring

1:29:29

is upon us. It's predicted to be another busy time

1:29:31

for real estate. This is some stuff we just picked

1:29:33

up out of the press. Average interest rates

1:29:35

for 15 year fixed rate mortgages

1:29:37

are at 6.16% right

1:29:41

now down from seven and some

1:29:43

change just a few weeks ago.

1:29:45

So interest rates are trending down.

1:29:47

Total housing inventory at the end of January was up 2%

1:29:49

and up 3% from a year ago.

1:29:54

Unsold inventory still sits at a three

1:29:56

month supply. And there

1:29:59

is a tremendous number of new listings coming. So

1:30:01

we're starting to see some supply

1:30:03

come back into the market. That's what we're

1:30:06

seeing. But we're also seeing

1:30:08

buyers come back into the market that were sidelined

1:30:10

waiting on interest rates to go down or waiting

1:30:12

on the crash. And for

1:30:14

people who don't believe that, I bid on a house

1:30:17

a week and a half ago, two weeks ago,

1:30:19

and I got outbid by four different buyers. There's

1:30:22

a lot of multiple contracts are coming back. That's

1:30:24

what the National Association of Realtors is reporting this.

1:30:28

Low inventory has driven the median home

1:30:30

price up to

1:30:32

an all-time high. Prices

1:30:35

went up. They didn't

1:30:38

crash. You

1:30:40

were wrong. They

1:30:42

went up to

1:30:44

an all-time high of 379,000. That's

1:30:46

the median home price in America. In

1:30:49

February, homes went from being listed to going under

1:30:51

contract in 17 days, and they were

1:30:56

at 27 days. So

1:30:58

they're selling faster. The market is

1:31:00

heating back up. And

1:31:03

this slight move in interest rate down, the grass

1:31:05

getting green in some of the markets, we're

1:31:08

seeing the real estate market heat back

1:31:10

up. We're seeing multiple offers in big

1:31:12

markets like Nashville again. And

1:31:16

let me tell you, I got my real estate license in 1978.

1:31:20

The number of years during

1:31:22

that, between 1978 and now, that

1:31:24

you put a home on the market and you got

1:31:26

multiple offers, it's been a very

1:31:28

rare time. But

1:31:30

prior to 2020, we were seeing some of it. And

1:31:33

then, of course, after Fauci's pandemic, we

1:31:36

saw people go crazy. And

1:31:40

they came out of their homes. They were quarantined

1:31:42

and came out looking for new houses like a

1:31:45

Baptist looking for a casserole. They were everywhere,

1:31:47

man. They were running around like crazy and

1:31:50

drove prices ridiculously up in

1:31:52

20 and out

1:31:55

of control like 89 offers

1:31:57

on a weekend, that kind of

1:31:59

stuff. All right, that y'all remember that that's just

1:32:01

a 20-minute click to eat two and a half years ago.

1:32:04

Okay And then it

1:32:06

chilled it just stopped and

1:32:08

the market has Gone

1:32:10

is continued to move but

1:32:12

it's very slow. The volume

1:32:14

has been very slow, but

1:32:16

still demand has exceeded Supply

1:32:19

and we've seen prices

1:32:21

go up and now that

1:32:23

the market's heating back up a little bit now We've

1:32:26

yet again got even more demand than supply

1:32:28

and we're seeing multiple offers again So

1:32:31

if you are thinking about selling a house This is

1:32:33

an excellent time to sell a house as a

1:32:35

guy who's trying to buy one, please sell your house

1:32:39

If you're thinking about buying a house

1:32:41

today, you're out of debt. You have

1:32:43

your down payment. You're ready to go

1:32:45

and The

1:32:48

only thing you're waiting on is you're waiting on

1:32:50

the real estate prices to come down or the

1:32:52

interest rates to come down Don't wait Go

1:32:55

buy a house right now if

1:32:57

you're ready because the prices aren't going to come

1:32:59

down and if the interest rates come down You

1:33:01

can just refinance So

1:33:04

you marry the house you date the rate?

1:33:07

That's how that works. The rate is

1:33:09

temporary. The house is dead gum. So here's the

1:33:11

thing Median house

1:33:14

price all time high

1:33:16

in history right

1:33:19

now Interesting

1:33:22

and you thought 2020 was crazy

1:33:24

and you thought 2021 was crazy All

1:33:27

right. I'm telling I'm not predicting it to

1:33:29

go nuts again But the idea that some

1:33:31

of you are still sitting around waiting on

1:33:33

this market to correct is hilariously

1:33:36

stupid You're

1:33:39

that wrong and David's

1:33:41

not gonna age. Well, hey, I've aged

1:33:43

pretty well in general There's a

1:33:45

couple things I've missed it on but I

1:33:48

pretty much call it on a lot of these things I

1:33:50

told you Bitcoin was a scam I

1:33:53

told you from the start even when all

1:33:55

of you people that joined Bitcoin like some

1:33:57

people joined Mary Kay Y'all were driving me

1:33:59

nuts yelling and screaming at me

1:34:01

like I insulted your Jesus or something.

1:34:04

It's crazy. And it was

1:34:06

a Dadgum scam and we knew it was a

1:34:09

scam from the start. We knew it was a

1:34:11

horrible idea and yet you walked around acting like

1:34:13

you're sophisticated and do rims you just don't understand.

1:34:15

Let me tell you guys, this is what's happening

1:34:17

with real estate. I promise you, you can look

1:34:19

up this particular YouTube five years from now and

1:34:21

you're going to go, yeah that old fart was

1:34:23

right again. That's

1:34:25

what you're going to do. That's exactly what you're going to

1:34:28

do. So prices are going to go up, rates are

1:34:30

going to go up and down, up and down, up

1:34:32

and down. They always have and they always will. The

1:34:35

only rate that you cannot adjust is mine.

1:34:38

My interest rate on my mortgage is zero

1:34:40

because I don't have a mortgage. That's

1:34:42

the only one you can control. So

1:34:45

get the house, get the house paid

1:34:47

off, go to remz solutions dot com,

1:34:49

get you a remz trusted agent to

1:34:51

buy a house or to sell a

1:34:54

house right now and quit

1:34:56

believing all this fear mongering bull crap that's

1:34:58

out there. Listen,

1:35:01

the market is slow but

1:35:03

demand still exceeds supply and

1:35:06

it has still driven us

1:35:08

to an all time high

1:35:10

median price on house. Those

1:35:13

are facts. That's called data. If you

1:35:15

don't agree with that, you're what's known

1:35:17

as wrong. Seriously.

1:35:20

So, if you're going to buy a house or sell

1:35:22

a house, that's times right now. I told you that

1:35:24

same thing 18 months ago and I was right then

1:35:26

too. This is the

1:35:28

Ramsey Show. Knowing

1:35:33

your purpose is the key to

1:35:35

escape your meaningless 9 to 5 job,

1:35:37

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1:35:40

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1:35:55

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get clear thanks

1:36:04

for joining us american dr. John

1:36:06

Deloni Ramsey personality and

1:36:09

real estate mogul is my co-host I

1:36:11

I'm not a lot of things Dave

1:36:13

but I'm not that I'm I'm a

1:36:15

bumbling idiot you're number fourth in line

1:36:18

among four people bidding on a house

1:36:21

in supposedly the the the

1:36:23

falling crashing dying economy

1:36:25

real estate market ever that's yeah

1:36:28

I don't know John you're a failure I'm thinking

1:36:30

I could be wrong I'm fairly certain you're on

1:36:32

the right track I

1:36:36

made a mistake I told my kids we got that

1:36:38

I was like I'm gonna go in to get the

1:36:40

house guys oh guys here goes daddy watch daddy you

1:36:42

gonna go back to be like your dad's a loser

1:36:44

kids Ed's in Myrtle

1:36:47

Beach what's up Ed hey

1:36:49

Dave and dr. John thanks for taking my

1:36:51

call I'll get right to it okay I'm

1:36:54

61 years old got

1:36:57

divorced nine years ago the agreement

1:37:01

the divorce agreement or settlement

1:37:04

was I would keep all the assets I

1:37:06

own a small business and have owned it

1:37:08

for 35 years a

1:37:11

paid for house paid for business

1:37:13

property and in return

1:37:16

I would give my wife a half a

1:37:18

million dollars paid for thirty five

1:37:20

hundred dollars a month and

1:37:22

I've been doing that for quite a few years

1:37:25

I've got it down to a hundred and

1:37:27

thirty thousand dollars now and

1:37:29

every month obviously that thirty five

1:37:31

hundred dollars you know bothers me to

1:37:33

pay her and I talked I go

1:37:35

back and forth about just paying it

1:37:37

all off I called her offered

1:37:40

her pay it off

1:37:43

in full with a little bit of a discount

1:37:45

she didn't accept that so I said okay I'll

1:37:47

just keep paying you and

1:37:49

you know I'm to the point in my life

1:37:51

I'm 61 years old how long ago

1:37:53

did was that probably

1:37:57

about a year ago okay and how much

1:38:00

do you have how much money do you have

1:38:03

I have 1.1 million in my

1:38:05

retirement in our retirement I just

1:38:07

got remarried on Valentine's Day this

1:38:10

past year and we have

1:38:13

1.1 million and 70,000 as an emergency fund and

1:38:15

your real estate's worth

1:38:19

what my

1:38:23

house is worth about 450

1:38:25

maybe a little more and

1:38:28

my business property is probably worth about

1:38:30

400 and then my business if I

1:38:32

sold that that'd be worth anywhere

1:38:35

between 1.5 and 2 million so you got

1:38:37

a net worth around 5 million dollars huh

1:38:40

okay yeah pretty much and

1:38:43

you can gain a out of 5 million dollars

1:38:45

you can gain yourself a ton of peace and

1:38:48

a whole new look on a brand

1:38:50

new relationship if you write a hundred thirty thousand dollar

1:38:53

check yeah do

1:38:55

it yeah do it I'm gonna do

1:38:57

it I was hoping you'd say that and I just

1:38:59

stayed on the phone for an hour and

1:39:01

15 minutes to get out and talk to

1:39:03

you I wanted to hear from you Dave I'm

1:39:05

sorry it's John's hard to get through

1:39:08

to but yeah I'm sorry I'm sorry

1:39:10

you had to hold for something that

1:39:12

yeah this is this is this

1:39:15

is the

1:39:17

final salute to that part of the

1:39:19

past yeah and

1:39:21

yeah I'm a little shocked she won't

1:39:23

take a discount but uh you do

1:39:25

something fun she's uh

1:39:27

she just won't she just yeah I don't know

1:39:30

if she would have you know would you all

1:39:32

still be married hey you do something fun yeah

1:39:36

this next month you're gonna write this check by

1:39:40

Monday of next week and

1:39:43

all right when April

1:39:45

1st comes around I want you

1:39:47

to get a check out and

1:39:49

write $3,500 and let your new wife see

1:39:52

it and then hand it

1:39:54

to her I

1:40:05

tell you what, as much as you hate

1:40:07

writing that $3,500 check every month, oh that

1:40:09

makes your new wife's skin

1:40:11

crawl, man. Yeah, yeah,

1:40:13

yeah. I can't

1:40:16

hear you yelling shit in the

1:40:18

background. That'd be the best $3,500 you

1:40:20

ever spent in your life, man. Yeah,

1:40:23

you need to do, you ought to do something to

1:40:25

celebrate that much of your past being in the past.

1:40:28

We're already in Myrtle Beach for three months. There

1:40:30

you go. Well, go out to eat and buy you

1:40:32

an expensive bottle of wine or something. But

1:40:35

yeah, write a check, be done with it. There's

1:40:39

an amount of peace and

1:40:42

closure and finality

1:40:45

and all those kinds of things

1:40:47

that's going to come when you do this, you can't

1:40:49

even anticipate because you're a business guy and you run

1:40:51

numbers all the time and you're

1:40:54

not going to catch how emotional this is until you

1:40:56

actually do it. It's going to be like, oh,

1:40:58

that's really done. I'm really done with her.

1:41:01

She is an ex. Yeah.

1:41:03

Ex, ex, ex. This has been a

1:41:05

very protracted 10-year divorce. Exactly.

1:41:09

And just the thought of calling and saying, hey, I'm

1:41:11

going to write you a check, will you take this

1:41:13

instead? And her saying no, that's

1:41:16

like she's still controlling

1:41:18

things. That's the only

1:41:20

reason she did it. Oh, man. Write the

1:41:23

check. She actually wanted the money. Write the check, man.

1:41:26

Be free. Free the ... I

1:41:28

don't think we've ever done a debt-free screen,

1:41:31

divorce-free screen, but I'm a divorce-free screen. We

1:41:33

could probably do it for you. Yeah.

1:41:36

We do those in the parking lot. Alimony free! We

1:41:39

do those in the parking lot. Wow. All

1:41:42

right. Corey's with us. Corey's in Salt Lake City. Get off

1:41:44

the rails. Corey, this is what happens when you get in

1:41:46

towards the end of the show at digressus. What's up? I

1:41:50

really enjoyed listening. Thank you for taking my call.

1:41:52

Sure. It's a pleasure to talk to you, gentlemen. Thank

1:41:55

you. I hope you're doing better than you deserve as well. We

1:41:57

are, sir. Thank you very much. How can we

1:41:59

help you, sir? Well,

1:42:01

thank you. So just

1:42:03

for a bit of context for you right now, I'm in Baby Step 2

1:42:05

and I'm going to have my

1:42:07

car paid off in about the next month. Good.

1:42:10

And that will be the last of my debt. Way to

1:42:12

go. Thank you.

1:42:14

Appreciate that. And then at the end

1:42:16

of this year, I'll have Baby Step

1:42:18

3 completed and projecting to you with

1:42:21

about $20,000 in my emergency fund. So

1:42:24

next year, I'm going to begin my or

1:42:27

I'll resume my 401k investing and putting some

1:42:29

money away from my kids' college funds. Excellent.

1:42:33

My question is, we're eventually

1:42:35

going to need to get a bigger house to

1:42:37

accommodate our growing family. And

1:42:40

right now, I have a seven-year adjustable

1:42:42

rate mortgage. If I could go back

1:42:45

in time, I wish I could take

1:42:47

that back, especially at this climate, but

1:42:49

I'm kind of have what I'm dealt with.

1:42:51

But I'd like to do

1:42:53

that in the next three to five years

1:42:55

just before the adjustable period begins. And

1:42:58

at that time, I'll have about

1:43:00

$1,000 a month extra

1:43:02

in my margin in our budget. And

1:43:06

the way I'm seeing it, I

1:43:08

have three different options. The first

1:43:10

one is, I'd

1:43:12

like to either put that extra money

1:43:14

towards our principal and our existing mortgage,

1:43:17

save that in a high-up savings account, and

1:43:20

then withdraw it when the time comes for

1:43:22

that bigger house, or take on

1:43:24

a bit of more risk or gain potential by investing in a

1:43:27

brokerage account. I was just curious to know what your thoughts were

1:43:30

on that. Well, you explained the baby steps

1:43:32

to us, which means you have some familiarity

1:43:35

with what we teach. Baby step one is

1:43:37

$1,000 saved to start our emergency fund Tuesday

1:43:39

at free, except for the house.

1:43:41

That's where you're getting ready to be. Three

1:43:43

is you need an emergency fund before we do

1:43:46

any of this of three to six months of

1:43:48

expenses. Once you've got that, then you're

1:43:50

in four, five, and six simultaneously. Four

1:43:53

is 15% of your income going into

1:43:55

retirement, as you talked about.

1:43:57

And five is kids college, as you talked

1:43:59

about. about and six is pay off

1:44:01

your house and we

1:44:04

tell people pay it on the principle pay

1:44:07

your house off man and even

1:44:09

if you don't get it paid off when you

1:44:11

sell it they give you

1:44:13

a check for the

1:44:16

equity you didn't lose the money it's all

1:44:18

right there stored in the house you

1:44:20

don't accidentally spend it or accidentally lose

1:44:22

it or buy a bass boat with

1:44:24

it or anything it's right there in

1:44:26

the house okay and then when the house does I

1:44:29

give you a check and use that check to move

1:44:31

up into the next house when you get ready to

1:44:33

do that you're probably going to do that within

1:44:36

before this seven-year markets on this

1:44:38

thing you

1:44:40

probably don't sell it but

1:44:43

you will have reduced the principle and

1:44:45

you've got this nice nest egg then coming out

1:44:47

of that house to move on to the next

1:44:49

deal you'll be glad you did that it's