The Ramsey Show - App - Am I a Failure if I Don’t Own a Home at 35? (Hour 3)

Episode Date: March 15, 2024

🎵 Live from the headquarters of Ramsey Solutions, it's The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I'm George Campbell, joined by Dr. John Deloney. This is your show, America, so give us a call at 888-825-5225, and we will do our best to help you take the right next step with your life, your relationships, and your money. Kelly's going to kick us off in Little Rock. Kelly, welcome to The Ramsey Show.

Thank you. What's going on? So my husband had a car accident last week that i'm being told is lifting leaving him paralyzed and with brain damage on top of everything else because of all of this now i'm trying to figure out he has his own business so i'm trying to figure out how to deal with his business and finding out that there is a whole lot of debt I didn't know about that he's been hiding and I feel like I'm in a free fall like with everything we've got five kids on top of everything else so I'm so sorry Kelly

do you have um do you have somebody that is also a part of that business that can step in? Not well. I mean, trying, but they can't, you know, they're not. What kind of business is this? It's not the same. It's a car lot. Okay. Well, here's what i'm saying if if he has

a traumatic brain injury and he's got compromised mobility now possibly forever and by the way they're going to tell you worst case scenario right now okay it's a complete spinal injury okay so you're looking at years of challenge ahead of you, right? Yeah, exactly. Trying to keep, like, let me just say this. I would make as few decisions right this second as possible. Okay? Yeah. Because everything is in chaos right now.

Do you have a mother, cousin, sister, brother that can come down and just be a person who can hear things that's not so clouded in smoke right now? Yeah, I do. Okay. They're trying. They're just, I think I've freaked them out too. Well, you're allowed to. You're allowed to.

So? Everything is chaotic and up in the air and scary right now, plus your mom with five kids, and everything just changed. So you're allowed to be upset and angry and raged out, and whatever emotions or feelings you have, they're all good right now. Okay? That's why you need people who care about you and who love you and who know you to also get in there and make some of these,

like, hey, what bill do we have to pay right now? Right. What's the age range of the kids? Five to 17. Okay. What's your financial situation personally? Do you have money in the bank? Do you have any debt?

Well, I have personally just me, like our finances are kind of mixed and kind of not. So like I just have like $5,000 for a credit card that I could pay off with what's in the bank. Okay. How much do you have in the bank? $13,000 maybe. Okay. Plus my kid's savings account. And the debt that he was hiding from you, I assume that's all in his name and none of it is in yours? So, I think so.

Okay. Does he have a business manager at the lot? He was it. He was a business manager. So this was kind of a solopreneur venture? Yeah, he has a secretary. Okay. Does he have an accountant that did his taxes?

Yeah. Okay, let's get down with the accountant, okay? And let's bring your sister or your brother or your dad or his sister or brother or dad, somebody or mom, somebody who can sit with you guys and hear, get a true count of what's actually going on here, okay? Right. The greatest gift you can give to those around you right now is to know I'm not seeing the world as it truly is because my world is blown up.

My husband is laying there in a bed and they're telling me he's never going to walk again. And I got five kids. I get emotional and I'm not ever been in anything near that situation. But when I get overwhelmed, I've got two or three men in my life that I trust to step in. And I say, is this real? Is this not real? What would you do? And I lean on them. and that's what community and friendship

and love and care is for, just this moment, okay? Okay. So you have a question we can help you with? I need to figure out where to even start with all of this. Okay, make no decisions for six months that are not... I don't have that option. We're going to run out of money by the end of the month. That's what I'm saying. That aren't about keeping your lights on. Okay. So if you're

going to run out by the end of the month, then we need to sit down with tax guy, somebody else who knows something about the numbers of this business. Okay? Okay. Does he have any money in the business that you could use to support your family we've i've got like accounts receivable and i've got like some inventory in the bank but like there's he's got a floor plan that's coming due like every week or two weeks. Does he have any form of life insurance

or health insurance? We've got health insurance, but there's no life insurance. I've got Aflac, of all things, but I'm hoping it's going to, I don't even know if it'll pay out. I don't know if work comp will pay out. Like I can't rely on any of that. Yeah, but that's what it's for. Very little, but liquid. Yeah. And the liquidity is going to be your issue, okay? And sometimes, will pay out like i can't rely on any of that yeah but that's what it's for very little but liquid yeah that and the liquidity is going to be your issue okay and sometimes you call you call the bank who's got notes coming due and your tax person can help with this but the notes coming due you call them and say hey the person who would have paid made this payment is now in a hospital bed fighting for his life. It's going to take a minute. Okay?

Okay. And give yourself some, the more proactive you are on these calls, the better. So if you know of a couple of things come and do, I'd call them. And if they need hospital records or whatever they need, get them the hospital records they need. What is your income, Kelly?

I would substitute teaching. So it's like $100 a day. And they've already told me that I'm not going to be able to work because he's going to need full-time care. Yeah, exactly. I know, but listen, this is why you got to have people because that is a, in 30 days or in 45, when he gets discharged from the hospital and all of that feels like it's happening to you right this second. Okay. It's not. It feels like that bank is calling and screaming at you right this second and it's not. It all feels like it's coming on you. That's why you got to have somebody else that's walking alongside you. Do you have a church community

that you're plugged into? Yeah. Okay. I would make sure they're aware of the situation and see if they can rally around you and support you in any way they can. And the other thing I'm going to do for you, Kelly, because it's hard to – I wish I could just snap my fingers and fix this on a radio call. But what we'll do is give you a free coaching session with a trained Ramsey financial coach who can dig into the details and help you start to sort this out because there's a thousand pieces,

and I know you're scared, and you've got the little kiddos who are looking to you for support and to be their strength. And this is going to be a journey. And right now it's a journey of just surviving the next day. And that is keeping the food on the table. Food, utility, shelter, transportation. That is your A1. The collectors can come all they want.

But you don't need to worry about them right now. So hang the line. We'll get you connected with Ramsey Financial Coach. It's on us. We are wishing you connected with Ramsey Financial Coach. It's on us. We are wishing you the best. This is The Ramsey Show. Welcome back to The Ramsey Show.

I'm George Campbell, joined by Dr. John Deloney. The number to call is 888-825-5225. Michael is up next in Raleigh, North Carolina. Michael, welcome to the show. Thank you, John. How are you guys doing today? Doing great. How can we help? Hey, yeah, I'm in a position where I am leaving Raleigh and going to a new state. We have about $100,000 in equity in the house. We owe know we owe 200 on the house it's worth 300 we don't have anything else besides a couple hundred dollars worth of bills um and when we

move to this new place real estate is much more inexpensive and we're in a position where we can probably buy it cash but then we'd wipe out our rainy day fund. What should I do? Well, don't love that idea. So I think... Not that. The lowest I would go is a three-month emergency fund factoring in the fact that you won't have a mortgage payment. And so I would only drain it down to that level. That's where I would be comfortable going to. So the question is, how can we fill in the gap to go? How do we have enough cash to where we're not going to do that? And that might mean you go to the new place and rent for

a little while. It might mean we don't make the move as quickly. So what is the timeline and urgency around this? It was three to six months, and I found out today it's going to be about a month and a half. Yeah, it's one of those work situations. You either move or don't have a job. So what state is this? Illinois. Okay. Have you ever lived in Illinois? What's that? Have you ever lived in Illinois?

No. Okay. So I'll just tell you, me, Ken Coleman, Jade, maybe George. When we moved from wherever we lived to Nashville, we all rented for a while to get the lay of the land figure out what's a cool part of town the not cool part of town the where we want to be part of town and man it just helps it helps level everything and it's a pain in the butt to move twice i know that but man i would hate for you to put all your money

into a place and realize i do not want to live in this part of town and it's too late and then by the way you put all your money into it and and realize, I do not want to live in this part of town, and it's too late. And then, by the way, you put all your money into it, and the air conditioners are going to go out, and you're going to need a new roof, even though you've got an inspection on it. And then you go into debt because you didn't have the emergency fund. I would rent the cheapest place I could rent that felt safe and then get a lay of the land, man.

Thank you for the perspective. And you've got to move in six weeks here are you trying to sell this house within that time frame uh yes i mean it's as simple as i'm having an appointment with open door tomorrow and they're no no dude they're gonna take you to the cleaners take your time bro why open door tomorrow i just i wanted to be able to buy a house. Yeah, you know who they target? Desperate people named Michael. They do, yes.

Don't do it, man. They're going to lowball you so hard. You're going to get screwed on this deal. Yeah, don't. Just don't. Take your time, brother. Here's what I would do. I would get in touch with a Ramsey-trusted real estate agent

at RamseySolutions.com and list it with peace. And that might mean we just go rent for a while while this home gets sold. And maybe it sells within the next month. Who knows? I mean, how quickly can you get it staged and listed? Probably within a few weeks. Yeah, easy. And maybe you can close with a few weeks after that. I mean, that's not unheard of if it's listed and staged properly. But I would not go desperately sell it to one of these companies. The last I looked, Raleigh was one of those cities that was almost as bonkers as Nashville is, and it's starting to heat up in a way that's kind of annoying because I'm trying to buy a place. And people are jonesing for homes at

$300,000 or less. Yeah. It's hard to find these days. Please call a real estate agent and do it right. It's going to cost you $50,000 or $60,000. Cancel the appointment with Open Door today. Tell them you called two strangers on YouTube and it changed your mind. But yeah, hey, go slow. It feels like

your whole world just got accelerated and everything's going too fast. The greatest thing you can do when the train feels like it's going too fast, get off just stop just get off the train okay you're in control you got to move cool i'm going to rent a place it's going to be annoying but it's what we're going to do we're going to find the right thing for us we're going to we're going to project out 18 months where do we want to be how do we want to feel what do we want life to feel like in 18 months and we're going to reverse engineer that back to today do you have a family, Michael? Yes. We left them behind a couple of moves back

out of California. Okay. So who's making this move? Is it you and a spouse, you and spouse and kids? Well, you're not going to like it. It was just me and the girlfriend that's been together 10 years. And we 50-50 on everything. And pretty soon it'll just be one. Okay. Well, cool. Dude, you can sell a house and get married this weekend. That's going to be amazing. Yeah, it is.

He's excited about that plan. Honestly, I'll ask her. I'm asking her next in April. That's fun. Well, if you want to come do it on the debt-free stage, we'll do it. George will officiate the wedding for free. I'll get one of those online licenses in five minutes. We'll make it happen.

It'll be fantastic. Yeah, Michael, go slow rent, okay? Go slow and rent, brother. All right. Thank you for the call. Wishing you the best with this move. It's exciting but also a little scary. Steve's up next in Seattle, Washington.

What's going on, Steve? Hey, guys. My name's Steve. I was just calling. I have some questions. I'm newer to Ramsey. I mean, I've been listening for the last couple of years, but I'm in a bit of a situation. I'm hoping you can help me with some guidance. I've got some debt, about $40,000 in consumer debt. 30 of that is credit cards, and then $10,000 is the remaining balance on my car loan. I am going to be getting a rather sizable bonus from work. Coming up the next week, it's going to be about $40,000 before taxes. And I'm a little lost on how to tackle it. I know I've read about the snowball effect and whatnot, but I owe so little on the car

and the payment is a little high at $650 a month. So I'm wondering if I should knock that off, free up some cash flow to attack the other stuff. Wanted to get some thoughts from you guys. So is this credit card, is it broken out among multiple credit cards, 30,000? Yeah, it's three different credit cards. What are the balances among the three? One is a 13,000 and it's 12%. Another one is 9,718%.

And then there's a 6,400 at 24%. Okay. So with this 40K, you're going to knock out all the credit cards and most of the car loan. And then probably within a month or two, you're going to knock out the rest of the car loan. Yeah, ideally, but the bonus is before taxes. So it's not going to be a full $40,000 in my pocket. It's probably going to be around $23,000 to $25,000 in my pocket. Okay, so they'll take the taxes out. And you have the $1,000 starter emergency fund plus whatever you need to cover your bills? I don't yet, but I guess that's some good advice that I should take from you guys.

So $1,000 starter fund. Yes. And then you mentioned bills and whatnot. Can you explain a little bit more on that? Yeah, so what are your household expenses just to keep everything going? The food, utilities, shelter, transportation, insurance bills, all of that. What does that add up to in one month? Gotcha. It's about $2,500. And what is your take-home pay every month? Take-home pay every month is about $3,700. Okay. So you should have about $1,200 in margin to throw out the debt every month. Yeah. Correct?

And then once you knock out all these credit cards, what do those payments add up to every month? That adds up to about $750. So you're going to have $2,000 to throw out the car loan, whatever's left of it. Yeah. And that's why I'm telling you, you're going to knock it out really quickly. And a huge component of this, Steve, is creating and sticking to a monthly budget. And we're going to help you out with that. We created an amazing app called EveryDollar, and I'm going to gift you the premium version. It connects to your bank account. There's a paycheck planning tool so that you know exactly where the bills are going to fall and if you're going to run out of money, and we'll help you plan for that. So a lot of great features

to help you along this process. But the key here is debt snowball, ignore the interest rate. You're a very smart guy, and I can tell because you know your numbers. But the key with this is behavior. We found that personal finance is 80% behavior, it's only 20% head knowledge. And so the hardest part is actually throwing the entire bonus at all the debt. And the best part is you freed up those payments, and now you can apply it to the next largest debt and the next largest debt. Okay. Okay. And so... Okay, that helps a lot.

Yeah, absolutely. Hey, let me ask you a quick question, Steve. Why do you think you're going to pay about 50% tax on this bonus? You know, it's just, I think it's more 40% just because I'm a W-2 employee, so I imagine that's how much is going to come out anyway. Okay. That may be a bit high. I guess we can wait and see.

We will wait and see. But whatever's left, you're going to be able to knock out real quick. I mean, what a blessing to get this bonus. Yeah. Just use it wisely. This is The Ramsey Show. Welcome back to The Ramsey Show. I'm George Campbell, joined by Dr. John Deloney this hour.

The number to call is 888-825-5225. Joshua's up next in Salt Lake City. What's happening, Joshua? Hi, George. Hi, John. Just calling in. I'm 35, and I'm kind of feeling like I failed as a father, and just trying to make sure that I'm – mostly because I'm trying to save for a home,

and this house market environment is pretty rough. So I just want to make sure I'm on the right track. What happened, man? That's a pretty – I'm fighting words right there. That's a tough judgment you've cast on yourself. Where's that come from? Well, I didn't grow up with a... I grew up with a broke family,

and so we had a lot of broke mentality. And so it wasn't recently until I found this show a few months back where I was like, oh my gosh, I'm old, and now I've got to start from scratch. And so I'm debt free. So thank goodness for that. That makes John elderly then if 35 is old.

Goodness, he's geriatric. Hey, so, but you said you failed your family, man. Like, why do you think that? Why would you even say those words out loud? I don't know. I just want to make sure that they're they're safe and they're they're uh in a they're set up financially and I I feel like I'm not going to be able to help them in the future because I'm starting at an older age and so all right let me let me tell you um

you may have heard me if you're new to the show you may not have heard this story my mom was not allowed to go to college for cultural reasons, okay? For religious reasons. And so at the age of 42, my dad was always encouraging her. He was just a policeman. And he was always encouraging her and encouraging her and encouraging her. At the age of 42, she took her first community college class. And then the next year, she took another class.

Next year, she took another class. And she graduated with her PhD at 57. She got tenured as a professor at 63, I think, or 64. And then this past year, retired in her 70s after her last semester at Oxford, teaching in Oxford. Okay. Why do I tell you that? The job part, cool. The extra income for my family growing up, cool. That's all fine. But me, in my mid-40s now, you know what I got? I got a ringside seat to watching a gangster of a mom change everything in her early 40s. And I got to watch her grind and get after it.

And I remember her putting the laundry detergent on the washing machine and saying, you're in seventh grade now, brother, or sixth grade, you're doing your own laundry, because I don't have time. And I was like, oh, this is so unfair. Yeah, right. It was amazing that she put that on me at that age. So I had to learn how it all works. And so you are putting, you are casting a judgment on yourself based on a number. And I hate that about our culture that we answer the question, what are you worth with a number? It should never be cast. That's a terrible metric for the question, what are you worth? But what you're giving your family right now is a dad at 35 the light came on you now have a new path that's going to be different than the one you grew up with and they're going to watch their old man scratch and claw and you are going to take them to a new level both financially because

you're going to do that you already don't owe any money man so that you're on a path but more than that they're going to be able to go to college you're going to go out of school they're going to go work because they have a picture of what that looks like and that was dad when he said no more i'm changing everything you are changing your family legacy over and beyond a dollar amount do you hear what i'm saying yeah does your family have it better now than you had it growing up? I guess I could say yeah. Yes, they do.

I don't know in what category that could be considered a failure. And so unless someone else used those words against you, I think we need to drop that and go, what is next for me? Do you think you're a failure just because you don't have a house, you have not purchased a home? You all are renting? Yeah. Are you not where you want to be with your career? Are there other factors at play here? Or is this

really just about home ownership and you saw that as a status symbol to own a home at a young age? It's mostly just home status symbol. There's a lot of voices that happen yeah get off Instagram brother you're doing real good man

what do you do for a living? I'm in software engineering what do you make? 90k how many kids you got? three and is your wife working outside the home? no we're homeschooling so what is your wife working outside the home? No, we're homeschooling.

Okay, cool. So what is your next financial goal? Do you guys have the emergency fund fully funded? Emergency fund is fully funded. Next goal is to just put at least 20% of our take home into savings so we can just save up for a 20% down payment. I love it. And you guys are both on board with the timeline for that? More,

more so her than me. I'm more on the mind of, I would like this in a couple of years, but it's going to take at least five. So five years to save up a down payment to do this the right way with peace. Yeah. I think you can do it faster than that.

That's considering you're not going to make any more money over the next five years, which I think in software engineering would be an insane assumption. Yeah, I just got a raise, and so I'm hoping that it will go up further down the future. Or as a software engineer, can you not do stuff on Saturdays and Sundays that's going to take time from your family? It's true, but if it gives you three years of your life back and gets you in the home that you want, it's going to give you some peace,

that's worth every penny of it. That's a good point. I could look up some things. You also live in a very high cost of living area, right? Yeah. Do you guys have roots there? Are you open to moving so you can have this home ownership dream sooner?

Uh, well, that's, that's still in discussions with what we're, what me and my wife are wanting to figure out. Okay. Am I crazy? Is there something else besides just owning a home?

I hear in your voice, a defeated guy. I, I, that's. I don't know. That's a good question. I'm confused because you're debt free with an emergency fund. You have a down payment goal. You have this amazing family. You live in a great area and it feels like you're like, I haven't made it. Well, we're living in a pretty tiny spot. We're in a condo, and we're kind of squished enough as it is, and I've been frustrated for a while in terms of where we're living. I just want something better for the kids.

I want a house where they can roam around in the backyard and play. Can you go rent a place? It's not, it's a little pricey for the renting. I wouldn't be able to do more than, I wouldn't make the 25% in terms of how much I should be spending on my home. Maybe you move. I mean, software engineering, there's a lot of remote positions. Maybe you move and are you working where you have to commute in every day i work from home so i i could so she homeschools you work from home it sounds like a pretty

flexible scenario let me let me say this dude you are you are you are project x george and i hearing this all over the country of people who have good jobs, are living the life they want to live, except that the town they live in, the city they live in has suddenly gotten so expensive they can't live there. And like millions and millions and millions of people before all of us, we have to make a decision. Are we going to stay here and contract our dreams to, we're just going to live in a condo,

or are we going to change zip codes? We don't want to, but this is reality, so that we can have the life that we want. And I think that's where you are. Because it sounds like you're living in Salt Lake City for some sort of, it's just this, I don't want to say fantasy, but it's like, we live in the city. And it's like, yeah, but that city's costing you your soul, man. I can hear it on the phone. Just doesn't sound like it's

worth it. Are the kids actively talking to you saying, dad, we're miserable. We want a yard? No. No. They're actually pretty happy. Yeah. They just want that. They just want to hang out, and they'll play with a cardboard box.

And so I think this has more to do with you than anything else in the picture. Do me a favor, brother. Hang on the line. I'm going to give you three free months with my friends at BetterHelp. I want you to talk to somebody because I'm convinced there's something beneath all of this that is, you're just not happy. I want you to be alive in this amazing life you got, and it all feels kind of heavy and dark. I want you to talk to somebody. So hang on the line. I'm going to hook you up. Welcome back to The Ramsey Show. I'm George Campbell, joined by Dr. John Deloney. Our scripture of the day comes from Joshua 1.9.

Have I not commanded you, be strong and courageous. Do not be afraid. Do not be discouraged, for the Lord your God will be with you wherever you go. Walt Disney once said, the way to get started is to quit talking and begin doing. Sick burn. talking and begin doing sick burn hey before we go to a uh call i think it's important to just let america know we were just talking about off air you and me once you re-ask the question you just asked about the alamo yeah i would just john's from texas and i wanted his take on what happened at the alamo i think your question was who won the alamo well i went i went and did the

big tour when i was over there. Really cool tour. America, if you're wondering, are our schools failing us? We're not doing well. It's tough out there. I've been studying a lot of personal finance lately. I'm not up to date on what happened in history. So I'm still learning.

But the Alamo? Honestly, I just knew it would push your little buttons down. Gosh, that's where P. Herman's bike is, in the basement. All right, let's go out to San Antonio. Speaking basement. All right, let's go out to San Antonio. Speaking of the Alamo, let's go out to San Antonio. San Antonio up next. What's up, Joshua? Hey, thanks for taking my call.

Hey, Josh. I don't know if you just heard, but Jorge asked, who won the Alamo? Right? I know. Hey, don't answer it for him. We're going to make him Wikipedia it or however millennials get their info these days. All right. So what's up brother?

Yeah. So, uh, I'm in a little bit of a situation, uh, to make, so I just finished paying off my car and I love the car. It's amazing. It's a, it's new and I mean, it's, it's kind of my dream car, you know? What is it? It's a Camaro. It's a 2021 Camaro. How old are you? I'm 25.

Okay. Cool. Paid off the Camaro. Love it. Yeah, so the only issue is that it's very expensive when it comes to gas, and I'm about to move into a house that's even farther from my house or sorry that's even farther from my work and school so the gas payments are going to go even higher i'm thinking of trading the car in and getting a tesla because

the house i'm going to has a electrical vehicle recharger and apparently I did a little bit of the math. Over three or four years, it should pay itself off. You've got Camaro's remorse. It's a common illness. Yeah, it's a very common illness.

What was your plan? You want to sell the Camaro and buy a Tesla in cash? Yes, but I still have to pay off about $10,000, maybe $11,000. Of what? What's the other debt? Just the rest of the Tesla. It won't fully... Oh, you're saying you can't afford the tesla

not straight up hold on hold on joshua but george in four years it'll calculate gas it's an investment it's actually an investment also joshua as someone who owns a tesla can i tell you like electricity is not totally free fair enough i heard it kind of like over a year, you'll pay like a third of what the gas would be. I mean,

you've probably heard a lot of things. I'm telling you that it is cheaper. I don't have the cost of gasoline and I'm a big, I love that.

It's really fun. Dave pays for my electric vehicle charging here at Ramsey. Rock on. But the thing is, going into debt for depreciating asset in order to save a few bucks a month is not a wise move. It's the same reason people go, I'm going to go get a solar panel loan for $38,000 because the salesman said it'll ROI in three years, and it doesn't. And so if you can't buy the Tesla in cash, don't buy a Tesla.

So what is the Camaro worth? I would say the average of the offers I got would be around $28,000, $27,000. Where are these offers from? Oh, Kelly Blue Book. And then as soon as I put it in, I got all these calls from various dealerships giving their offers to me. Yeah, they're lowballing you because they're going to flip that and make a profit. So I would look to sell at Private Party and see how much you can make there, and I'm telling you, you can find a Tesla for under $28,000.

You can also find a $10,000 Prius and ball out. You want to do that? Cass, what's up? I'm not sure about the Prius. See, I knew it. It says nothing to do with gas mileage. You just don't like the Camaro.

Just say that out loud. And you have, Joshua, I'm, tell me if I'm wrong. You're, you have an obsession with brand new cars. It scares you to buy a used car.

Yeah, I would be lying if, I mean, I know it's not the smartest financial decision but at the same time i'm getting a nice car and why why is a used car not a nice car who lied to you and told you that i drive a 10 year old tesla that i bought like two years ago it is the nicest car i've ever owned the problem is once you only drive new cars, all the other cars are like, ugh, this has some wear and tear to it. And guess what? That new car, that Tesla, it's going

to become a used car when you drive it off the lot. And another thing, only once you have a million dollar net worth should you be buying a new car because that depreciation is crushing your wealth. What's your net worth? I'm not really sure how to answer that. Are you a millionaire? I am not a millionaire. How much do you make? What's your annual salary? About $70,000 I'll make this year. Okay. If I'm in your shoes and you really want to save on gas, then you'll sell that car and you'll buy the most affordable car you can get that is electric or hybrid or whatever. And I'm telling you this as someone who did not pay $28,000 for their Tesla. They exist out there, Joshua. In fact, Teslas have taken a huge hit on depreciation. You can find some killer deals right now on a used Tesla. Okay.

And so that's what I would be doing. Go find you a used Tesla that you can pay cash for once you sell the Camaro. But do not go take another car loan. You work too hard to get rid of this debt to just go right back into it. Yeah. Do you have any other debt? Yeah, that's a very good point. No, but I sign off on a mortgage at the end of the month. That'll be my debt. I have zero debt other than that. How much debt is that?

It'll be about $260,000. I'm guessing this is on a 30-year with very little down? It's an FHA, yes. Oh my gosh. 30-year. Okay okay is it too late to get out of this um can you back out of this deal morally ethically legally I think I could I thought I would lose the earnest pay how much money do you have in the bank do you have an emergency fund

after the down payment earnest pay. How much money do you have in the bank? Do you have an emergency fund? After the down payment and the... Well, after all the costs closing, I probably have around $8,000. Okay. I'm guessing you put little to nothing down on this. Yeah, I didn't have much. About $10,000. Oh, boy. Okay. Well, that'll be a call for another day, Joshua. But for now, I'm not making any moves. This is a lot of money that you've been playing around with, and I need you to get a financial foundation under your feet before you start making big boy moves. And at 25 and the way you've been living, it scares me a little bit.

Because I can see you going right back into debt as soon as something shiny shows up in your face. Are you going to be living alone? So, I won't be living alone. I'll be renting out to a girlfriend. Oh, boy. I've found that's the most romantic thing you can do. Bro, you are amazing.

You know why? A, because I like you. I want to hang out with you. I think you and I would go get chips and queso. We'd have a good time. And you literally are making every, like every, our entire show is about not doing the things that you're doing because you have the opportunity to do something nobody in your family has ever done. And that is to become a millionaire, to be so wealthy that

you can take care of everyone around you in your neighborhood, except you're going to blow it on renting to your girlfriend and buying a house with at 2.6% down and buying a new car and then selling it and then buying another new car and then selling it and all the while just taking that money and burning it in the yard with depreciation. Like, bro, hang on the line. I'm going to send you Financial Peace University as my gift. I'm going to pay for it. And I want you to watch every video and break the curse, man. It's not too late. Oh, man. Can you imagine your boyfriend turning into your landlord? That's an awkward situation. Hey, it keeps my show busy, that's for sure.

That puts this hour of The Ramsey Show in the books. My thanks to Dr. John Deloney, all of the guys and gals in the booth who kept the show afloat today, and you, America, will be back before you next time.