The Ramsey Show - App - Are Dave’s 2023 Real Estate Prediction Coming True? (Hour 2)

Episode Date: May 23, 2023

Dave Ramsey & Rachel Cruze answer your questions and discuss: "I'm $500k in debt after buying a farm", How Dave was right about his 2023 real estate market predictions, "What do I do with the proceeds from my house?" Managing unexpected home repairs. Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Join a Personality-led FPU class. Click here! Enter The Ramsey Cash Giveaway for a chance at $3,000! https://bit.ly/TRSgvwy Shop our bestsellers during the $10 Sale! https://bit.ly/TRS10Sale Want a plan for your money? Find out where to start: https://bit.ly/3cEP4n6 Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6 Interested in advertising on The Ramsey Show? https://ter.li/s64ye3 Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

Live from the headquarters of Ramsey Solutions, broadcasting from the pods, moving, and storage studios, it's The Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. Number one best-selling author many times over and co-host of the Smart Money Happy Hour podcast, Rachel Cruz, Ramsey personality. My daughter is my co-host today. Open phones at 888-825-5225.

Nathan starts this hour off in South Dakota. Hi, Nathan. Welcome to the Ramsey Show. Hi, Dave and Rachel. Thank you for taking that call. Sure. What's up? Yeah, so I'm a 22-year-old farmer, and I recently, in an attempt to grow my operation, bought a piece of land. So between the land loan and an operating loan, I have about $500,000 in debt. So the land loan is $475,000, and it was just a couple months ago that I bought that. And it's just starting to set in now. I'm going to be paying this off for the next 30 years, and I guess I just wanted to get your input on what the best way to tackle that would be. That scares me to death.

Does it not scare you? Yes, it is. I mean, my chest is tight, and I don't owe the money. Yeah. Wow, man. You're not freaked out at all? Well, I am. I mean, farmland is terribly expensive, and it's always, I mean,

I've always been taught by my dad and other farmers that you just have to start somewhere and, you know, start paying some land down and so your dad's suggestion is at 22 years old that you go five hundred thousand dollars in debt he endorsed this plan yes he did wow okay i'm not sure i'm not sure that we have any answers for you to be honest with you nathan um well are you going to be is i guess your plan is to farm the lands and make an income off of that correct yes correct okay what do you anticipate the income being? Well, it varies a lot. The farm economy has gotten worse the past few months and

right now it's looking like the profit from the land won't quite make the payment. So about $25,000 is what I think the crop will be off this year. The payment each year is $40,000. But on the better years it could make its own payment possibly so you bought a business for five hundred thousand dollars at 22 years old that loses money this year and on a good year breaks even well i have other land that i'm renting from i know did you not hear what i just said

yes that's just dumb okay that doesn't make any sense at all you that that you know if you know but because you're a farmer you think it's okay it's not okay that that's not that's not good math that's not good business farming farming is a business it should be a profitable business and the way you engage in it must be profitable you have to create a profit and loss statement and you have to actually create revenue in excess of your expenses and you put so much debt service on yourself you can't breathe so nathan the extreme you know uh decision here would be could you sell it is there is there a possibility are there buyers is this why would you want to work for 30 years for zero money and all you do is clear a piece of ground when you're done

and he's a second gen farmer i know i'm just saying the logic of this is that by your dad suggesting this is baffling that you're going to work for zero profit for the next 30 years and your net result is you clear a piece of ground that yeah yeah it's not logical i mean i love real estate i love farming i love farmers uh but but this doesn't it's not it. I mean, I love real estate. I love farming. I love farmers. But this doesn't make sense. So you guys have to back up from this a little bit and figure out a different approach to create a profitable business, or you need to get out of this before you get foreclosed on. Right. Because what's going to happen is if you borrow $30,000 to cover your losses this year,

now you're 23 and you owe more on the ground than it's worth. Yes, that's right. And then the next year, we hope to break even. Yeah. Man, I'm sorry. I don't want to be mean to you at all i have a tremendous respect for how hard you work i have tremendous respect for the fact that a small percentage of americans feed all of the rest of us yes and uh but that does not mean that because but this is not sustainable we're not going to justify it for you nathan i mean like you want to be able to sleep at night i want you to set yourself up i want you i if you told me

you're a brain surgeon and you were breaking even i would tell you not to be a brain surgeon you know if you told me you were in brain surgery believe me if i'm going to get operated on i'd like a good brain surgeon around if i want some food on my table i'd like a good brain surgeon around. If I want some food on my table, I'd like a good farmer like you out there working. Man, I appreciate who you are. And so I'm all about you winning at this. I want you to be profitable. If you told me you could make a million dollars a year being a farmer, I'd be proud for you. I'd want you to do that.

You know, I mean, so this is not me hating on, but this idea that just, but I got to tell you, man, I've worked with farmers for a long time, 30 years. And a lot of them carry on and gripe about me because I tell them not to borrow $500,000 on a combine. And then, but there's this romanticism with farming that says, oh, the math doesn't apply because i'm a farmer well math does apply it applies in every dad cum business and it's the same philosophy we use for any other business it applies if you're running a non-profit church serving jesus and it applies if you live in california you want to buy a house right like oh it is just the math it's the math it's and it's what brings a blessing to your life, and that's our goal here. And I wish I had a magic wand.

Mine's low on batteries that could make this deal work. I don't know how this deal works unless you could tell me you can make $100,000 a year profit instead of losing money the first year and maybe the second year and maybe the third year and ending up owing $100,000 more within a couple of years on this property than it's worth. And that's not a plan. So what would you say, sell it? That or rework the business model. I mean, I don't know what he's doing.

I don't know what his crop rotation is. I don't know what his particular crop choice is. I don't know what he's looking at why why you're going into a business that at 22 that you're planting that you're planning to lose money well it could be the crop i mean it could be the weather the crop i mean that's the hard thing about agriculture economy and the farm economy depending on which segment we're talking about is struggling yeah i don't argue that point either but you can't you know, you can't open a restaurant and lose money. Yeah. The first year and the second year and owe so much that you can't pay your payments.

That's why that doesn't, it doesn't work in any business. And man, I wish I could make this better for you. But you've got to either rework your business approach to this, or you need to look at getting this sold before you get yourself bankrupted by your dad's horrible advice. This is The Ramsey Show. Rachel Cruz, Ramsey personality, is my co-host today. Hey, let's clear something up. If you listen to this show for 10 seconds, you'll know we hate debt. And some people, for some reason, don't get that. They think you need debt. You need credit cards to build your credit. Well, we think you need a

good credit and because they think you need a good credit score to buy a house. Well, you don't. The truth is living a debt-free lifestyle, eventually you won't have any credit score. If you don't have any open accounts and you don't use credit at all, eventually your credit score will disappear. And when you're ready to buy a house, you got to find a good lender like Churchill Mortgage who can do what's called manual underwriting. Like George Camel, when he and Whitney bought their first home, which is now paid off, they got it through Churchill Mortgage at a zero credit score. And they got the same interest rate as a premium credit score would get. You are not penalized if you have a mortgage

company like Churchill that knows what they're doing. Might sound crazy, but the best plan for your future is to avoid debt, get a big down payment, get a great real estate agent who will help you find a house you can actually afford. We recommend our endorsed local provider agents. They are Ramsey trusted. That means they're a top performer in your market they're they are high octane high protein if you're going to sell a house get with somebody sells a bunch of houses not somebody who got their license last week who happens to be your friend from college that's dumb don't do that this is your house okay get somebody that actually knows what they're doing that has a proven track record in the area.

Go to RamseySolutions.com slash agent. You can find these Ramsey trusted agents. Do you remember? Well, it's probably two years ago now that people were starting to talk about the bubble, the bubble, the housing bubble. It's going to burst. It's going to burst. It's going to be another 07 you know like the oh yeah the freak out and then we did the big the the reality the real estate reality check calm everyone down live stream and so you know the market we've said it's not i mean it's cooled down it's not as

insane as it was then uh yep so we're stabilizing and so uh on instagram i know you love instagram reels uh a guy a guy had a whole thing about how the number one market that's going to burst very soon is Nashville and how Nashville it's going to all this stuff. And then I went and read through the comments and they were like, are you insane? Like, have you been to Nashville and seen the economy? Because it's still crazy in Nashville, right? I mean, like there are still fewer houses. The guy is still saying that? Yes, there's a guy.

And I just saw it the other week and I was like, oh, no, not Nashville, because we we experience it here. And it's like people are still flocking and still moving here. But what we can't get you to not come. I know. So for you and your perspective with real estate specifically, like what what trends are you seeing out there because i mean i kind of just i i see nashville no nashville but overall the landscape the the bubble has not burst we are still okay but it has it has softened right some i mean it's not as it's not as urgent and freaked out as it was but overall what are you what are you saying i think um you know i i think

we can just stop and say i told you so can't we i mean because we did like 18 months ago when everybody was frantic because the market had slowed down and interest rates were coming up we did a two hour long live stream i would imagine you could still watch it and go back and watch it and i think you'll see in that that we predicted exactly what has happened now now we don't always get it right but we were using data not emotions to actually figure out what's going on and the data was this there even though the interest rates have gone up there still is a dramatic inventory shortage in real estate in almost every city in order for prices of anything to come down supply demand curves have to shift meaning

that the supply has to be much higher than the demand but when there is the opposite a shortage versus a glut in the market when there's a shortage prices go up so if you want to cause the prices on something to go up make it scarce make it make it be a shortage there is not a shortage of real estate there is a i mean there is a shortage of real estate. There is a, I mean, there is a shortage of real estate. And so the opposite of prices tanking, everybody's, oh, it's all going to go away. It's all going to be another bright 2008. And we kept saying, no, it's not. It's not going to bust.

It's not going to bust. We said it is going to slow down. And we said, if you're going to sell a house, you're going to have to actually clean it up and stage it, which is, you know, and you can expect to put it on the market again. You can put it on the market. You expect 90 to 120 days and you can expect not to get 110 percent of your asking price with 87 offers on one weekend. That was an anomaly. That was a short period of time after COVID when everybody sat around in their house, got fat, and decided they wanted to move out of their house.

And no one was building anything because materials are so expensive. There was a shortage of lumber. Lumber went up 3x. It's back down. And builders are not building specs right now. They slowed down, and they're adding to this shortage because the it's slowed down and they don't they won't get stuck with a spec house and so spec house starts are way off which is hurting the inventory even more you can't find a house in a

lot of markets so you have not seen prices crash you've seen them steadily increase we said in the year 2023 you were going to see a two to a seven percent increase in prices nationwide and that is about what we're going to see and that's what your home is actually valued not the inflated price that people are throwing out there yeah because people could put an extra half a million dollars something insane on you know and people would just buy it this is not asking price this is actual value that's right. This is actual value. That's right. That's right. Actual value. And it's not people buying like they've lost their dadgum minds. This is people, reasonable people buying properties at reasonable prices. You're going to see that number. You know, you put a house on the market for $300,000, expect to get an offer, you know, of 280 and that you're going

to negotiate and expect to sit there for 90 to 120 days to sell the house and expect that if your house is ugly and dirty it's not going to sell so that's not unusual that's like 90 percent of the years that we've had real estate operating in america it's been that way we had a short period of time when it was cray cray and we covered all of that in detail and then it has happened exactly the way we had a short period of time when it was cray cray and we covered all of that in detail and then it has happened exactly the way we said yeah so no whatever characters on whatever instagram economist that's like it was funny though it's like an oxymoron well i'll be honest not that i fall for everything i see on the internet even though that sometimes is the case

not everything but mostly i had a moment where i was like oh gosh what does he see that i'm not see i don't know and then you know i'm watching it again i'm like that just doesn't feel right and the funniest part is just going to the comments because people just rip oh everyone's like i'm a real estate agent are you kidding me like smoking something yeah so anyways it was it was good but that's what you're saying that's just good to know i think that it's good to kind of just get a pulse on um and then interest rates obviously are they're up they're up and do you ever see them coming back down to that two three percent i don't know i i don't know what interest rates are going to do i will tell you this you can have a healthy sustained realist residential real estate

market for home buyers and six percent will just rock it for days i mean we've rocked it for decades at six percent the only reason it was driven down below six yeah was artificially by the government driving it down to re-stimulate the real estate market after 2008 but prior to 2008 for what 15 years it sat around six yeah you know when i came on the air in uh 1992 uh two doing this show the rates were like nine and we were selling lots of people selling houses everywhere nobody thought anything about it yeah and then they came down to six and we thought oh this is awesome this is great because six is great when you're comparing it to nine. Six is not great when you're comparing it to two and a half. Yep. Yep.

You know, and so it's all your point of reference. The secret to happiness is low expectations. Right. So. Oh, my gosh. But yeah, you're right. We should have stopped and said, I told you so, because we know that's not what I was asking.

No, I take this moment. No, we really should do that every so often because we get that's not what i was asking no i you will take this moment no we really should do that every so often because we get so much stupid hate mail by people on these uh social media channels and everything else that we don't know what we're talking about and we completely nailed that yeah i mean our team here and i the ramsey personalities looked at the data and we said this is what's going to happen and we hammered it we nailed it and it certainly wasn't the crash of the real estate market that a lot of you were believing and predicting was going to occur 18 months ago just think back to 18 months ago and that's about when we did

that live stream so go look it up. This is The Ramsey Show. Rachel Cruz, Ramsey personality, is my co-host today. Welcome to The Ramsey Show. Open phones at 888-825-5225. Carrie is with us in Montgomery, Alabama. Hi, Carrie. Welcome to the Ramsey Show. Hi, thanks for having me. Sure, what's up? So I recently got a divorce while I left him last summer. It was like a domestic violence situation that I had to get out, and I was in nursing school

full-time, and so I got out, and I got back on my feet like a lot quicker than I thought I would. Good for you. A lot quicker than he told you you would. Oh, yeah. He said I would be nothing, you know, all that fun stuff. And you're going to be the rock star that we all know you to be. I'm proud of you. Yeah.

But anyway, he kind of controlled the finances. So I had a credit card left, but I hadn't been using it. I kind of used it to get a lawyer and to kind of get back on my feet. And so I have about $6,000 left. I had like $16,000, but I've been paying it off. And then I got a job. I work in like medical sales now, and my base pays like $60,000. And with commission, I make on top of that about $5,000 to $7,000 every month.

It kind of varies. My worst month was like $7,000 every month. It kind of varies. My worst month was like $3,000, but it was when I was getting started. But I did buy a house in November. Unfortunately, when interest rates were $7.25, it's an FHA loan. I have $26,000 auto loan, but it's 3% interest rate. I got a really good interest rate on that. And then I have about $18,000 in student loans. So I'm just wondering, like like what i should pay off first and then we just closed on our house we flipped houses together and i we had to split the last profit so i have 25 000 from

that that i just put in the market i got it i got it like a week ago that'll jump start your plan yeah good it's making it's like a 4.5 ap, so it's a really good money market to go by. Yeah. So I'm trying to decide, like, should I keep it there? What should I pay off first? I really want to get a better home interest rate, but I'm just not sure when I'll be able to do that, you know? Yeah. Well, Carrie, you're doing an incredible job.

I mean, you absolutely have taken hold of your life. I mean, you're doing incredible work-wise. You're making great money. And yeah, you're just in an incredible spot, which I'm really happy for you. And I mean, that's a courageous, the whole event is a courageous thing that you just stepped out of.

And you said, I'm taking life back in my own hands. So I'm just really, I'm impressed by you in that way. Do you have any other money saved besides this $25,000 that's in a money market account? Not really. Like I have my banking account set up for like 20%. I just stuck it up to 40% of like when I get paid, it just automatically goes to my savings, my money market. So I was saving like 20% each paycheck. So I have about 2,000 in savings on top of that. So maybe 27,000 total. That's great. Okay. So what I would do is I would take this $25,000 and we teach you to pay off the smallest debt first. So with that $25,000 plus you have $2,000 in your other savings, which I would take that down. I would drain it down to $1,000.

So you really have $26,000 that can be thrown at this debt, which means you can pay off this credit card. And then you'll be paying off, gosh, this auto loan. So you only have $6,000 left on your car. No. By the end your car. No. By the end of today. No. You got $26,018 and $26,000 on the car, right? She has $6,000 in credit card debt.

No. Yes, $4,000 of that is like a 24-month interest-free credit card. You got an $18,000 student loan? Yes. Oh, the student loan. That's right. So you got an $18,000 student loan. $,000 student loan and then you've got how much on your credit cards um six thousand but four thousand of that is like interest-free i don't care we're not going to play interest-free games and interest rates don't matter you are in debt we need to clean up the debt okay when you get the debt cleaned up you're going to have no payments

anywhere in your life and you're making money you're going to have no payments anywhere in your life, and you're making money. You're going to put this whole horrible mess in your rearview mirror, and it's just going to be smoke back there. It's going to be awesome. I love it. Okay? So I would write a check today and pay off your credit cards, and I would close every one of those credit card accounts

and use only a debit card for your transactions. Then I would pay off the student loan today. Okay. And then you've only got the car left at $26,000, right? Yes. Okay. With $2,000. People keep talking about the student loan forgiveness.

Do you think that's ever going to happen? No. Okay. And you know what? Even if it does, you borrowed the money, you owe it. Yes, sir. Okay. And you know what? Even if it does, you borrowed the money, you owe it. Yes, sir. Okay. And you make good money now.

You're going to be making $100,000 this year, aren't you? Yes, sir. Yeah. So pay off your $26,000 student loan. Okay. Who cares? Yeah. And the house I bought is a fixer-upper, so should I just wait on fixing up the house?

Yep. Okay. Yep. Let's get the debts cleaned up because when you don't have any payments but the house payment you're making a hundred thousand dollars a year you feel that freedom already when i just said that wow you got no payments but a house payment you can fix that house up pretty quick yeah and no more debt no more debt you don't need any banks telling you what to do.

You got rid of a jerk that used to tell you what to do. We don't need anybody else telling you what to do. You are amazing. Go get it done, girl. Yeah, and when should I refinance my house since I just bought it? When you're able to get a lower interest rate. All right. As soon as you call Churchill Mortgage and find out what you've got to do,

is your credit damaged by this mess? Is that the problem? I paid off a lot of it, so it shot back up. It was like a 650, but now it's back up above a 700. When did you do that? Before or after you got this 7 1⁄4? I did that a couple weeks ago when I first i got like 32 000 and i paid most of it off with that because i think that i was making chunks i was doing like a thousand dollars payment

on the credit card yeah go ahead and get rid of this debt all this debt when you get rid of all this debt you're going to see that card that score jump up again and right when it does that if you can get down around a six percent that'll give you a one and a quarter savings that'll make it worth refinancing and call churchill mortgage and get that if you can get it down to six percent or lower it's going to be worth refinancing and should i do a 15 year or 30 year always a 15 year and hey listen you're asking a bazillion different questions about all of the different things because now you're in control of your life again and i want we want to help you with this recovery this bounce back that you're doing and give you the confidence on the money piece to do everything i want you to go

through financial peace university because we want to be a little part of your amazing story and so you hang on we're going to have austin up. We're going to pay for you to go through this class. It's online. You can do it. And, you know, when you get all these answers, these questions are all swimming around your head, and you're going to go through this class and go, oh, now I know exactly what to do. Your confidence is even going to soar more, and you're probably going to make more than $100. Then you'll probably make $100.25.

And with that, Kerry, you're going to get every dollar plus as well. And so, honestly, too, the amount of control you're going to feel of just budgeting when that paycheck hits knowing exactly where it's going and once this debt's paid off because even at the end of today i'm like you could have just your car loan left at 24 000 and not get out so you can actually start to see your goals and where your money's going and being really intentional with it and there's something empowering too about that. And again, especially from what you've walked through the last year and a half, to be able to have full control over that income where your money doesn't even have you, like you

truly have it. You are the one controlling it. There is something in that too. And just that simple budgeting app, I'm telling you, that's going to give you so much freedom and so much confidence. So we're excited for you, Carrie. By the way, for those of you out there that think you have a friend or a relative that is a victim of domestic violence,

married to a jerk who thinks his wife's a punching bag, let me tell you a real symptom. The data shows this, and we know this from 30 years of working in these situations. If the guy is 1, is 1000 in control of the money and will not let his wife make a single decision of any kind with the money there's a high correlation between that behavior and domestic violence because if he can control the money he thinks he can control her and this this whole domestic violence thing is about control and so if you see a guy who's doing that to his wife he's probably beating

her that's what i'm saying not a hundred percent but there's a high correlation to that this is the ramsey show thank you for joining us america we're so glad you're here hey if you're liking the show thank you and uh we know that a bunch of you are spreading the word on this show because our rankings and our ratings continue to go up and that means there's a whole bunch of new folk out there thank you thank you for joining us and help us spread the word there's a couple things you can do to push the needle on this whole process if you're a youtube viewer or listener obviously you can subscribe and you can share hit the share button and same thing with your podcast you can subscribe you can share over on spotify or apple or google

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Tell people you're about the show. Share them. Share, share, share, share, share. Subscribe, subscribe, follow. And if the format allows you to, leave us a five-star review. If you want to leave a one-star review, just change the channel. Okay, people get mad when you say this. Why?

Because they go and do one-stars, and they're like, because Dave told me not to do this, I'm going to do it. Really? Yes. People are like, Dave said, I can rate you however I want, Dave. What are you, stupid? No, stop, stop. You're going to make them do one-stars.

I don't care. Just don't mention the one-stars. Just say, here, I'll do it. I'll show you. I'll show you. Okay. I'll show you. All right, here, I'll do it. I'll show you. I'll show you. I'll show you. Okay. I'll show you. All right.

Show me how to do it. So if you guys love the show, if you find that it's really helpful and encouraging, make sure to leave us a review. We really enjoy it. We love reading them and hearing. I don't. Oh my gosh. Lord have mercy.

I tried, James. I really did. I tried. You need to go read your reviews because it is helpful for people. I'm not taking a poll. We're doing the show. If you guys love it, thank you. We appreciate you loving it.

And we'd like to read that you do and it helps the algorithm. There's a lot of reasons to leave a review. It does help the algorithm when you leave a five star. It doesn't when you leave a one star. What are you trying to destroy the show? Go over to Smart Money Happy Hour because we read your reviews there for sure yeah george and i love them they're inside jokes so do an inside joke of a review right now dave like like everyone leave the like emoji or something and then you go

through and read like oh look there they all are oh yeah it's fun interact with the people dave come on i do dad i do a talk radio show for three hours a day, five days a week. That's interacting with the people right there. That's when I do that. Oh, my gosh. Just leave a review. It does help. I read them every day.

James reads them for me. That's what it is. I used to not. I knew. But you should. The way I care is I have James. To tell you. James, you need to tell him to stop saying not to leave one's house.

I knew that if I told him, he would double down, and that's what he's doing. I know. Our cause is not working. It's not working at all. Andrew's in Orlando. Andrew, how are you? I'm doing good. I think I'm with Rachel on this one.

I think you might have activated the internet troll. Oh, I know. Right, Andrew? Tell him. Tell him to stop. Such a boomer. Way to go, man. Way to go.

Thanks, Andrew. You're no help at all. Next caller. No! We're here for you, Andrew. We're here for you. How can we help you, brother? So my wife and I just bought a house in Orlando, Florida.

We're moving down from Louisville, Kentucky. And we're having a bunch of home repairs pop up. And, you know, we planned for these repairs, like some repairs pop up, but kind of the numbers getting ahead of what we budgeted and kind of want to get your take on how we should handle it. Like what? So we knew that it needed a new roof. It probably needed new plumbing.

So we had like $25,000 set aside for that. We're toward the end of that, and now we still have our six-month emergency fund. So right now there's a hole in our kitchen floor down to the crawl space, a couple of joists are bad, and that's sort of where we're sitting right now. What happened to the hole? How was there a hole? You just didn't notice there was a hole in your floor?

No. So on our last trip, we started ripping up the floor uh so we knew something was bad in there so i started ripping it up and then the subfloor was rotted so we ripped that up and then joists below it were uh were bad too that's a fine piece of property isn't it needed plumbing a roof and the floor is rotten did y'all do um like an No, he bought it. Yeah, we got an inspection. Really? We negotiated the price down from $20,000. But it cost you $25,000 to get to the point that you just have a hole in the floor.

Right, but we got it below what it's worth. Not if you only negotiated it down $20,000 and the repairs were $40,000. Yeah, that makes sense. Yeah. So, okay. But here we are. So how are you going to fix the floor? We're planning on doing the floors ourselves.

What's it going to cost? I mean, we're probably thinking a couple grand for that. But then after that, you know, we'll have countertops, cabinets to put back up. So our plan was just to get the floors down and then cash flow until probably Christmas where we can get the money together to get all the kitchen done. How do you operate your household without a kitchen? Toaster oven and a mini fridge. Your wife is a champ yeah i know she is man you got her you got you got a deal and you got her camping

wow oh man um i don't know what else to do though though. You're here. Yeah, you got this far in. How much did you guys make a year, Andrew? $160,000. We're expected to make $160,000 this year. Okay. So, yeah, that's great income. So you can cash flow it pretty quick with that great income. That's the good news in this story.

Okay. Yeah, let's get the floor done and get moved in. What's causing you all to move from Kentucky to Orlando? We got jobs out here. We're opening up a engineering office down here. So part of the initial crew. Okay. For work.

Okay. Good. Good. Well, yeah, I think you got your plan. I mean, you got to cash flow it. And I don't want you down to, you know, not having a kitchen. It's pretty close to an emergency, but I don't know. You could just decide if that's an emergency or not.

You could take some money out of that, yeah. He already is to fix the floor. So would you recommend just going down to three months for now or just kitchen further? Yeah, you could. Yeah, I want to get this kitchen done and just have a habitable property. I mean, toaster oven is quasi-habitable, right? Right. Yeah, when you're at the toaster oven level quasi-habitable, right? Right. Yeah.

When you're at the toaster oven level, that's a pretty different level. Toaster ovens are great. Yeah, I know, but that's the only thing there. The sink doesn't work, the whole thing. Yeah, so just, yeah. Wow. And then the rest of it, any other improvements you're going to do, you have to get your emergency fund in place and then cash flow above that

once you get the kitchen thing in the rearview mirror. How old are you guys, Andrew? I'm 26 and my wife's 22. How long have you all been married? About two years now. Any kids? No kids. Okay.

Y'all got this. I'll give you a warning okay you probably have made all of the withdrawals on home repairs in your marriage that you'll be able to do i doubt she's going to do this one with you again you probably got your one play here for the rest of your life play my cards well yeah this is the i think you've completely made all the withdrawals on that part of the bank that you can. I'm guessing that this young lady is going to say, uh-uh, not again. Or she may love it.

She may love the adventure. I don't know. She might. She might. Yeah. But I'm guessing. This is the kind of stuff your mom would have gone along with me when she was 22, but the chances of her doing it when she's 62, really close to me leaving before this happens. Okay, so not a chance.

Not a chance. You know what? It's a fixer-upper, and they're doing it themselves. It's an adventure. It's the toaster oven adventure. I think it's great. You can tell your grandkids, back in the day. Wasn't that a movie?

A toaster oven? The toaster? The great, what was that? The little blue, the toaster. It was like an old Disney cartoon. Oh, I have no idea. The brave little toaster. The brave little toaster.

There you go. Andrew, that's to you. It must have gotten, it's gone because it must have gotten all one star reviews. That's to you, Andrew. There it is. This is The Ramsey Show. Hey, it's Rachel Cruz. If you love the show and want a deeper dive on your money journey, we have a weekly newsletter that gives you trending and helpful articles and tips on following the Ramsey way.

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