The Ramsey Show - App - Are You Going to Be a Victim or Take Control of Your Life? (Hour 2)

Episode Date: March 13, 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 actual amazing relationships. Jade Walsh, our best-selling author. Ramsey Personality is my co-host today. Open phones at 888-825-5225. Muhammad is in Asheville, North Carolina. Hey, Muhammad, what's up? Hello, Dave. How are you doing today?

Better than I deserve, sir. How can we help? So, me and my wife, we make a pretty good income. Combined, we make about $500,000 a year. Wow. Way to go. Thank you. No, mostly her. So a few years back, I invested basically everything that I have into this business.

It's a franchise business that I bought into. And, you know, I've been struggling for quite some time. Um, but I wanted to know how I could separate myself from the business and all those sorts of things. Cause right now I'm really, you know, taking feeding from my bank account into the business bank account. So the business is losing money. Correct. It's not profitable. How much money? Correct.

And for how long? So, yes, I think all in from origination, probably $800,000 in the hole. So, what is the belief that this is going to turn? So, I mean, we had hurdles, mainly because we had, like, you know, a manager that was not showing up, like employees not doing the jobs. And it was really difficult because I no longer live in the area of where the business is. So I couldn't just hop in. And what I've done is I've revamped operations, specifically working with the entire team, having weekly calls,

all these sort of things to establish that cadence. What kind of business is this? It's a fitness industry. Okay. And did you lose money last month? Yes. Okay. Why did you lose money last month? Yes. Okay. Why do you keep doing this?

That's a great question. So, you know, initially when I went and tried to buy into this. No, I'm talking about from today forward, what is your hope? What is your belief that causes you to keep doing this i understand there's things in the past that are not replicated but you you're either you either need someone to shake you out of your denial and say sell the stupid thing or you need to tell me that there's a real reason you can see a light at the end the tunnel that is not an oncoming train other than i just think it's going to get better because i have a feeling. Gotcha. So I have considered selling it. I'm actually,

you know, I have listed it. Hey, Muhammad, answer my question. Why do you think this is going to get better? Well, because I've seen the numbers go up in the past month or two. Okay. So there is a trend line in losses and the lines are getting right across and you're actually going to be even or profitable soon is that a true statement that is a true state i think i'm about three to three months away from being hitting break even okay that's a that's a valid logical reason to keep going okay that's what i was trying to get at because i just I've lost 800,000 I had some hurdles the thing is in another location I can't I'm having to tighten

up tighten up tighten up now when it starts making more questions though because you're eight thousand eight hundred thousand dollars gone in the red so you just breaking even on my side of the table I'm still like okay but that's not profitable that's just you not losing money it's not breaking even because you haven't gotten back the 800 000 well it is breaking even monthly monthly it's not it's not burning more cash that's the problem we don't have a burn rate anymore sure but how long until we're starting to actually be profitable not just month over month but in the big picture that's's a lot. All right. Let me ask it this way.

What is your plan 12 months from now with this thing? I'm hoping to sell it by the end of this year. Okay. All right. So we're going to try to get it up where it's not in the red and then get it sold because it's in another city. It's not been a fun experience, and we're just going to write off the experiences.

Ouch. Right. Okay. Because you're probably not going to write off the experiences, ouch. Right. Okay, because you're probably not going to get $800,000 for it, right? Probably not. Yeah, okay. All right, so you're going to take a loss and move on. And I didn't mean to beat you up. I'm just trying to get in there with you because I do all this

entre leadership stuff with these small business people, and I love small business people, but this sounded like a nightmare, and it has been, hasn't it? Yeah, it's been a nightmare from the get-go. We had a lot of hurdles due to time delays. So what is it you're wanting to separate to protect? It sounds like you're afraid somebody's going to come after you personally over something that's going on with the business. Is there a loan on it?

Yeah, there's a loan on it. Okay, how much of a loan do you have on it? About $520,000. Yikes. How much do you think you're going to get for it? I'm hoping to get $600,000 just to kind of get rid of that. I mean, $500,000 would be fine too. Okay, and I assume this is like an SBA loan or something like that that you signed personally.

Yes, sir. Ouch. Okay. You can't protect yourself like that that you signed personally? Yes, sir. Ouch. Okay. You can't protect yourself from that. You signed it personally. That makes you personally liable. All of your personal assets and future income is exposed until you clear this. So it is absolutely vital that you get this thing sold

and get this monkey off your back, okay? Yep. There's not a risk management tool that will handle this it's after the fact you can't buy fire insurance after the fire so you've signed personally you took out a 520 000 credit card and you can't get away from it until you pay it off and so you didn't take out a credit card i understand that but i'm saying that's exactly the same thing it's a personal liability on this loan and your income and anything you own or anything that has your name on it is exposed until you get this paid off. And so, yes, I would try to get that thing as profitable as I could,

as quick as I could, and get it sold as fast as I can. I want this thing out of your life for a whole bunch of reasons. 520 of them, 1 be exact dave dave talk about sunk cost fallacy because i feel like that's at play in many ways when you've just put so much money into a deal that's what i was fishing around i was trying to figure out if that's what he was doing so sunk cost is i don't want to um he's got a he's not doing that because he's got a $520,000 loan he's trying to clear. So, but sunk, let's say he had put $800,000 cash in this. Okay. Which he might have in addition.

I was going to ask if that's in addition to what we didn't. But anyway, whatever, she put $400,000 in it, whatever it is. And you have to, sunk cost is you're trying to recoup something from the past and you're not giving an accurate view on the future and the way you avoid sunk cost analysis you can do this with your personal items as well is if i had that same amount of money today in my pocket so let's say you could sell that let's say you owned a business completely separate from this discussion or uh anything you had an own investment let's call it that that you uh that you have two hundred thousand dollars invested in but you can sell it for a hundred

thousand a day if you had a hundred thousand dollars sitting in the middle of the table would you buy it today lord no it's awful well then sell it today but i got 200 in it you're not gonna get the 200 back because it's awful. So that's sunk cost analysis. You're worried about the $200 you put into it while ignoring what you project the future to be. Right. You do your decisions based on what you project the future to be, not what the past was, not what you've got in it. It's what you think it's going to do from here. That's your decision-making paradigm.

I'm Dave Ramsey, your host. Jade Warshaw, Ramsey Personality, is my co-host today. She's a best-selling author. And I've been covering the microphone in my absence for the last little while. A little bit. A little bit, Dave. You know, I try to do my best here. No, thank you. No one can fill your shoes, though. Let little bit, Dave. You know, I try to do my best here. No, thank you.

No one can fill your shoes, though. Let's just be clear. Well, sure they could. Actually, the ratings went up while I was gone. So we had a record month on YouTube, a record month on the podcast while I was gone. We did, but there were also a lot of people. I wasn't on the air. There's a correlation here. I'm just saying.

That's true, but there was a lot of people wondering where you were. And I read some of the comments,'s waldo yeah i read some of the comments and they said dave needs to come back from his backpacking trip in antarctica i don't like backpacking and i don't like cold okay well what about this one dave needs to come back from his hiking trip to the top of mount heverest you just hike up there you? These are real comments from the YouTube show. Dave needs to come back from his feeding baby elephants in Nairobi already. Baby elephants, Dave. Baby elephants, Nairobi.

I didn't really peg you for that guy. How about this one? I actually did that, but yeah, there you go. Dave needs to come back from the rainforest. The rainforest. Yeah. Or this one. MotoMom1311 says, Dave needs to come back from his wine tasting trip across

south africa i didn't do that but not on this trip all right not this one well this maybe it's this one this is my favorite 12 days ago uh at nagriff says dave needs to get back from his middle east peace talks asap yeah because i'm known for my peaceful demeanor. When I saw these comments, I was like, this is too funny not to talk about. Well, they got kind of started on a thing there. Dave needs to come back was like the theme. That's funny. Be careful what you wish for, Marissa. Yeah, for real. For real. No, we were in Cabo uh and uh for six weeks and

I've never taken six weeks off in my entire life so it's the first time I've ever done it I am 63 so that's about as close to retiring as I'll ever get I don't retire I'm not going to retire I'm going to keep talking on this microphone until I don't make sense or until the ratings are so bad when I'm on that y'all won't let me come on anymore. But anyway, I'll still be hanging out. I love doing this, and I love doing the events that we get to do. We're doing a big Total Money Makeover event. We're in a planning session for that this morning. It's going to be done in May, and a virtual investing essentials event in May.

I'm planning both the content pieces on that with the content team this morning, and I love working on this stuff. It's a lot of fun. Well, listen, Dave, you were gone, and I was here, and I may have that with the content team this morning. And I love working on this stuff. It's a lot of fun. Well, listen, Dave, you were gone and I was here and I may have pissed a few people off. Good. While you were gone. Well, that's why the ratings went up. You took over for me.

Thank you. You know, I, you know. Because Rachel's just too nice. She is nice. I've seen her get a little snippy, though. I've seen her. Yeah, a little, but not much. She needs to get, yeah.

Well, I was snippy enough for both of us. You did it she needs to get yeah well i was well i i may have said you might have said i might have said that people need to understand that the glory days of inexpensive living are over for now like prices have gone up and inflation is up and buying a home is very difficult and And I've been hearing a lot of, you know, back in 2018 and in 2020 and in 2021. And I said, you know, as long as we're not looking at today and we're looking in the past, you can't go forward. And I think it's keeping a lot of people in a state of discontent and it's hard for them to be happy it's fine hard for them to find gratitude because we're all we keep comparing today to yesterday see i don't um yeah you're right but there's not a glory day well i think it's just more than it used to be so my parents bought their first home in 1963 for 1212,230.

Okay. That house today would be what? $400K, right? And they don't live in that house anymore. But I mean, that house today, that's what it would sell for. I know right where it is. It's just over the hill over here. And I still live in the same area.

And that was 1963. You know what my grandparents said how can any young people buy a house for 12 000 dollars on a 30 year you're gonna pay on it till you die it's awful and you know what the interest rate was it was four and a half percent oh god that's what my grandparents said dave this was supposed to be my rant but i mean that's all that's all that's happening right now right that's right i mean and so i'm looking at these prices and i'm like my grandparents right i'm like god this is ridiculous how can any of these young people buy a house bless your heart and the young people are looking at it and of course social media gives you an inordinate ability to bitch and whine and so some of you people whine and wallow in the victim stuff from now yeah you boomers bought your house with two buckets of strawberries y'all don't know

what's going on and it's like oh god your whining is unbelievable it's a lot it is a lot but i understand because it's scary i do understand and you've never experienced that up until this feel crap but my point is it's always been that way exactly it's it's always been that way and it just depends on when it hits you prices are worse than they've been since 1980 yep that's true but every generation has their version of that so here i was i was doing an interview with an npr lady yesterday doing a thing on real estate it's going to come out later i guess whenever the npr does her thing and she said so what do people do what do they do because wages it's systemically broken what do they do and i said well there's always been a time and there's always been a place where someone lived in a

neighborhood they could not afford okay when i started doing this show 35 years ago, you could not live in Los Angeles or Manhattan downtown unless you made X number of dollars. That's right. You can't afford it. Well, it's not fair. I don't care. It is what it is. It's not a fair.

The fair is where the Tilt-A-Whirl and the cotton candy is. There's not a fair, okay? It's a math thing. Yeah yeah and so you can't afford to live in Los Angeles today or San Diego today um or certainly in uh San Jose or San Francisco today some people if you make fifty thousand dollars a year some people feel like they can't live in whatever the suburb is of their normal sized city, like in just a normal. Well, that might be true, but they might be outside the suburb then, but cause every city,

unless it's contiguous to another city or contiguous to a mountain or water has what we call in urban growth ring theory. You drop a pebble in the center of the city and every ring that goes out gets cheaper unless it, unless it bumps into a view of water or a view on a mountain or something else that drives the price artificially. Sure. Okay. But generally speaking, you drop a pebble in downtown Nashville, Tennessee.

You know, you go 30 miles out. You got one price point. You go 100 miles out. You got a completely different price point. And that's true around America. Okay. It's true in Columbus, Ohio. It's true in Austin, Texas. It's true in Dallas,us ohio it's true in austin texas it's true

in dallas texas except you run over there into fort worth because they're beside each other but other than that you're going to get a ring going out of that area and the further you know years ago 25 years ago i started going to dallas 30 years ago i started going to dallas mckinney was an exit and now it's a it's a metal building now it's a metroplex right north north dallas right uh north you know north dallas and so uh but same thing here with spring hill exactly spring hill was a wide spot in the road and now it's a it's a legitimate bedroom community and you should have bought there 20 years ago no you should have bought there 40 years ago right no you should about there 20 months ago because it's always gone up everywhere.

Now, here's the truth. The truth is it is very hard to buy a house right now. Very hard. And it shook some people up. And I am sympathetic to that. I'm not sympathetic to victimhood. Right. And you're whining about it.

But I'm sympathetic to the fear. I agree with that. And the sense of being stuck. And that was the intent of my post. The intent was to say, listen, you're right. It's not the same. And like John Delaney would say, you have to gr with that. And the sense of being stuck. And that was the intent of my post. The intent was to say, listen, you're right. It's not the same. And like John Delaney would say, you have to grieve that, grieve what was and grieve what won't be anytime soon.

And then take action. Decide how you're going to live. Yeah. Decide how you're going to live. Because you don't get to yell and scream and they change prices because of your whining. Never once has a real estate price been changed because of people's whining. And that's what people are saying. Well, what do you want us to do, Jay?

Just sit back and accept it? And I'm like, change what's in your house. No, what I want you to do is quit yelling at the wind and adjust your sales. That's good. Yelling at the wind doesn't do anything. Adjust your sales. And so you need to decide, maybe I used to think I could live in this city making this much money so I've

got to adjust my income with my career choices and by the way that may be very uncomfortable or I've got to leave this area another uncomfortable thing I can't afford to live in San Francisco I can't afford to live in whatever yeah and I may have to live 100 miles out of a city instead of 30 miles out of a city if I want to own a home. But your income has to go up in order to buy more expensive things. It's a math thing. You don't get to whine about that and fix it. There's not a systemic thing that's broken. It's a broken brain. Adjust your the wind moved this is the ramsey show jade walsh all ramsey personality is my co-host today guess what in the lobby of ramsey solutions

on the debt-free stage are some young people who have managed to exist in this economy they have adjusted their sales and have decided to go win and have not whined i know this about them because they're here to do their debt free scream hey guys this is landon and delaney welcome guys good to have you thanks for having us where do you guys live we're from st joseph missouri it's close to kansas city yeah know it well very cool good to have you guys. And how much debt have you two paid off? Paid off $51,000. And how long did that take? Two years. Good for you.

And your range of income during that time? About $75,000. Very cool. Do you guys own a home there? No. So you're getting out of debt. Now you're getting ready to think about buying a house. Can you afford to do that now? Getting there. Now that you don't have any debt? Oh yeah, for sure. He's smiling. He's just looking at me. Like, I'm not sure. You got a little bit of time to save. Okay. You got time. Now you're on your way though, right? Yeah, absolutely. Good

for you. Okay. So what kind of debt was the 51,000? It was my student loans, all mine. Wow. What's your degree in? So my degree is sports management. Good for you. What do you do for a living? I actually do sales at a TV station in St. Joe, KQ2, shout them out. But I do sales there, marketing. Good for you. Cool. What do you do, Delaney? I am a registered nurse.

Awesome. Awesome. Very good. Well, you guys are doing great. So you have the student loan debt, and two years, how long have y'all been married? Two years. Okay. So you get married, you come home from the honeymoon, and you honeymoon you go uh-oh Landon's got student loan debt tell me about this what happened

yeah so you know when I was in high school I was going to get free college because my dad worked at a university in near Kansas City I'm from Kansas City so my whole my whole life in high school I was like I'm just gonna get free This is great. And then my senior year, some things kind of happened and my dad didn't work there anymore. And then they kind of went away from things that we didn't agree with. So then I had to make a decision when I was a senior, you know, and I was like, I didn't save any money for college. So I was like, oh, I can get a loan. Everybody else does it. It's fine. And I didn't know any of the risks of it or what it entailed at all. I knew nothing about it. You know, my parents just kind of said here's what you do and i did it and here you are sign right here

press hard there's three copies and fifty one thousand dollars later here we are okay so you guys get married and decide to attack this how'd you get aligned on this ramsey stuff tell us about all that well i grew up listening to you like my mom told me about it we had the little like junior Dave Ramsey thing oh you're a financial peace baby yes so um I was already aware of it and throughout college I worked lived at home paid for it throughout college so um I kind of mentioned it whenever we were dating and engaged and um thankfully he was kind of willing to listen and we had a financial peace class at our church and my father-in-law my his father-in-law my dad was like you guys should do this before you get married our teachers are here with us today oh really cool what a great pre-marriage class

absolutely yeah so that's kind of so uh landon goes in there and goes i don't know what this girl's gotten me into she's cute but what she what is this class yeah so i mean my father-in-law apparently he has these 10 things i have to do before i marry her which is like i have to live in the woods for a day and kill a deer yeah ask me if i did that i didn't do that so sorry but he still gave me the blessing i missed the deer but went to fp missed the deer but went to but he voluntold me to do fpu and so that was a part of the agreement to marry Delaney. I like him. Yeah, you probably would like him a lot.

Was it bad or did you like it? No, I loved it. And the thing that really stuck with me is the gazelle speed. I was like, kind of how you described it. There's other things you need to go at, but the gazelle speed is so important to hit that immediately and continue and do not stop. And that's kind of the philosophy i took and here we are yeah and you guys knocked it out fast very fast yeah and so he's going hey i did good yeah he's proud i guess right yeah

good very good some people will look at this and go two years that's a long time i can't sacrifice for two years i can't cut back for two years I should be able to live my life what would you say to that person well I mean I I think that's just false and I think people they look at what they have in front of them like I remember there's a quick story I'll tell but we thought I paid off my Sally Mae loans and I don't like mentioning her name but I can now because we paid it off. See you later. Sally, bye-bye. Anyway, so I paid off about 15,000 in Sallie Mae and I thought it was done.

But they kept calling my phone and said, you need to pay right now. You know, there's debt you still need to pay. And I was confuzzled. I'm like, why? Why are you calling me? You know, quit calling me. And they said, well, there's two accounts under your name.

And I opened up another account and there was 20,000 plus dollars. Oh 000 plus dollars and it was really discouraging oh and so and i can let delaney speak on what she said to me but we kind of just felt this piece and yeah we do a group i mean it was like what do we do like you thought you were done yeah and the suddenly the finish line moved right yeah and these loans had like 12 to 15% interest rates, which is unbelievable. So we just kind of felt this peace from God saying, I'm going to get you through this. And at first it's really discouraging to look at all these loans in front of you when you've worked so hard.

But with your gazelle speed philosophy and the debt snowball, it was like, just like that, we're done. Just like that. And God's like, look what I did. You know, and you trusted me. And so we give the glory to God. Amen. Honestly. Well done, you guys.

I'm proud of you. Thank you. Well done. Very cool. You can do anything if you can do this. Good point. You killed the dragon, man. Well, Mizzou plays an SC tournament today,

so we need that philosophy. Oh, and 18, they can do anything. There we go. Good luck. Jesus in sports. I don't know, but there we go. How jesus in sports i don't know but there we go how come jesus is always on other people's team yeah so um yeah the uh what do y'all tell people the key to getting out of debt is i would say just like like you say like changing your mindset of it

because i think a lot of it is how you look at things and kind of like to answer your question earlier like just a momentary like suffering i guess if you want to say it of looking at it versus like a lifetime of just peace like it's totally worth it and the feeling we have now is incredible yeah i mean it's like i almost go to bed some nights thinking we still have debt i can't go to get chick-fil-a but it's like well i still got chick-fil-A when I was in debt, so you can still do that. Congratulations, people. But I'm just like, wow, I can go to bed feeling great.

We don't have any debt. This is amazing. Yeah, we always say live like no one else so later you can live and give like no one else. It says in Hebrews, no discipline seems pleasant

at the time, but it yields a harvest of righteousness. Delaney, how old were you when you did Financial Peace Junior? Maybe like 10. Okay. We also went through it in my high school as well. So I did it again.

Oh, wow. You couldn't get away from it. Yeah. Okay. Financial Peace Junior. And then you go on the dadgum teachers teaching it in econ. Ramsey curriculum. It's in 48% of the high schools so there's a

probability that's going to happen and uh wow way to go okay so i'm just bringing that up for all of you that are listening that have kids and your kids are rolling their eyes someday your kid will be a beautiful little 25 year old married to a guy who had some debt and it'll all be cleaned up because you're laying some foundational things that make this feel a little bit more normal because this didn't feel weird to you it felt weird to him because there's new information yep yeah but um but for you it was like this is how you live as i mean it was in high school i was 10 years old on the chart chores were on the refrigerator and here we go you know so yeah that's you're normalizing common

sense in your home when you do this stuff folks and rachel always says when she's teaching uh when i'm talking about teaching kids more is caught than taught and so watching your dad and mom you know set you up for this whole thing and so this is a second generational move here that we're seeing and um and someday soon we'll see the third generation so there we go you know that's cool good for you guys i'm so proud of you thank you very very very well done how old are you i'm 24 23 wow 24 23 i called you 25 i'm sorry that's better than what i get normally and i usually get 35 with our haircuts now well it's not, I'd like to tell you it's going to get better, but I can't tell you that.

Probably not. That's all right. All right. Landon and Delaney, Kansas City, St. Joe area, really. 51,000 paid off in two years, making 75,000. Count it down. Let's hear a debt-free scream. All right.

Three, two, one. We're debt-free. Let's go. Yeah. Woo, two, one. We're going free! Let's go! Yeah! That's how it's done, boys and girls. Hey, we're going to give them a one-year subscription to the EveryDollar app that connects to their bank with the EveryDollar Plus. And, of course, we're going to give them two of them, one to give to a friend. So not bad at all.

Way to go, you guys. See, there's the whiners, and then there's those folks. Sale adjusters. There's the doers and the whiners, the victims and the victors. And the victims write in the comments, the victors seldom do. Love that. the victors seldom do love that jade walsh all ramsey personality is my co-host today thanks for joining us open phones at 888-825-5225 we appreciate you guys being with us tony is on the line in knoxville hi tony welcome to the

ramsey show how's it going guys better than we deserve what's up well uh my wife and i we've been busting our butts and uh basically all we have left now is the home mortgage cool and uh we're down to like 89k in our home loan. We've been paying it. We did the 15 year and we're paying that off early. How old are you? How old are you? 47. Okay. And what do you guys make? About 120k a year. You're doing great. Way to go, Tony. We're trying. So I guess my question is, do I keep throwing every extra dollar into paying off this home mortgage, or is it okay to do some home renovations? It's okay to do some home renovations. All right.

Now, here's the thing. When you move from baby step three, where you have your emergency fund and you're debt-free but the house, and you're in what we call four, five, and six, so you should be putting 15% of your income towards retirement. That's four. You should be putting something aside for kids' college if that applies. That's five. And six, the house should get everything else. When you're in one through three, you're in gazelle intensity mode. When you move into four, five, and six, you're in intentional mode.

And so what we're doing is we're sitting down looking at the budget, and we're saying we have a lot of goals that are competing for the same dollars. Okay? I want to get a better car. Mama wants to get a better couch. Mama wants to get a better couch. We want to renovate the kitchen, and we want to pay off the house. The more we do of any one of those

means automatically, mathematically, the less we do of the other. Does that make sense? 100%. So you're just being intentional. You're looking at it and saying, okay, we have a couple of goals here that I've heard so far, and that one is renovation and two is $89,000 mortgage. Both are good goals.

Now, so what I would look at is say, okay, what level of renovation can I do that scratches the itch that i've got but it's not hog wild so that i can also get out get about the business of getting this mortgage paid off um that's the way i would look that's why sharon and i did it okay in other words you don't have to do all one or all the other or you could say for six months we're going to do the home renovation and then after that we're going to turn that off and we're going to you know or whatever it is so what's the renovation and what's it going to cost uh we haven't gotten quotes yet but it's going to it's our bathrooms which can be expensive but ours aren't too big so you know i i loosely priced it out with the local construction but i gotta get more what are we going to are we going to get? Are we going to guess 20K? I was thinking between 10 and 20.

Okay. I'm going to call it 20. All right. So we have $109,000 we need to accomplish both of these goals. Right. When are we going to do what? I mean, do we want to do it, you know, zero extra on the house till we knock out the baths? That wouldn't be bad with your income.

You'll be there before Christmas. True. True. Okay. And then once we've done the baths, we're going to pledge to not do any other renovations until we go ahead and knock out the house. And just talk that through and get alignment with your spouse. And that's how we do it. What do you all do?

That's what we do. I mean, we're literally right where you are. It's paying extra towards the house and doing renovations. And right now we've pushed the pedal forward on paying extra on the house, but we've decided that when we hit a certain point, we're going to switch it. And the 80% is going to go towards renovations and the extra 20 is going to go towards the house. Yeah.

And just a little back and forth. So in other words, the answer is not no. The answer is just which is first. Right. Because neither one are evil. Now, if you told me I want to do $300,000 worth of renovations. That would be a different story. Let's just full stop and let's have a whole other discussion, okay?

But I didn't think you were talking about that and you weren't, okay? No, it's like we got a dingy bathroom and it's like, you know. It's time. I'm good with that. I mean, that's actually good money spent on a house because you'll get it back. That's not wasted money. But even if you want to do something where you're not going to recoup all of it, like, say, putting in a pool, okay,

seldom do you recoup all the money you put into a pool when you sell the house. Very seldom does it raise the value of the house equal to the investment in a pool so you've got to enjoy the fun of it as part consumption of it is part of the equation and so but even that if you're going to say we're going to spend 20k on a pool which wouldn't be much i wish that you could spend 20k on a pool you can blow them up but the uh little get your little yeah but the uh anyway if you did i mean you just say okay i'm and i want to buy a boat okay there's another one okay that's going to go down in value it's not a good investment but it's a lot of fun okay and i want to spend 20k on a boat you can have that same same discussion but if you say i want to spend 300k on a boat then you go no no no

no no no no no yeah because you're going to be all your life screwing with that instead of getting your house paid off so you there's a that's the only check and balance in this but typically you can do all in on one or or heavy on one or light on one and then switch back off yeah i like what you said just enough to scratch the itch yeah that's all i mean again because here's the problem on renovations it's once you start you keep going it's like a thread you want to keep pulling it that's what i'm saying you can't just do the kitchen and not do the floors and you can't do the floors without doing the floors in the bathroom and if you do the floors in the bathroom well then now you've got to do the bathroom it's just yeah and it it you get scope creep yeah that's what you get yeah and it's just uh it it turns into a thing. So yeah, it's very interesting.

It's very interesting. And so you got to set very clear project oriented goals and give those projects time limits and dollar limits, set a budget and then stick to it. And especially with construction items. Yeah. Yeah. Because those things all get scope creep if you don't. We're building a house right now.

We're fighting scope creep if you don't. We're building a house right now. We're fighting scope creep. Not with each other, but we have the money, but we could jump over that budget. But right now, we're ahead of schedule and slightly over budget. Who's voted most likely to want to up the budget? You or Sharon? Me. You? Yeah.

But I don't just as a matter of pride because I just don't want to. I want to hit budget. That's good. Just like the builder is going to be early as a matter of pride. I feel like that's lucky that you have that switch inside of you because usually the spender doesn't have that switch and they need the other person to switch it. Yeah. Well, I mean, we do look at stuff and sometimes wants something, and we can afford it. Of course.

It's not like we're breaking the budget if we do it. That's not the question. It's the question of at what point are you just being ridiculous? Yeah, sure. It's like, I mean, who needs an oven that large? But apparently we do. You do. That's okay.

Have you seen that mechanism? I thought of you. There's a mechanism called chefy that prepares the food for you you install it in your kitchen it's robotics and you can just say i want this and it makes the food for you dave add that to the budget no no it's too late it's ten thousand dollars the appliances are already scheduled sorry too late you need to stay away from sharing sharing you are barred from speaking to my wife we have some very interesting appliances in this thing but yeah it's it's it's because there is no end to it no matter what you have there's always a bigger one a better one a shinier one there's

always a more expensive one and if you don't freaking pay attention and we live in this ridiculous neighborhood and some of these people will dial up something and then fly off to another state, and they're building this house, and they don't even look at it. And then they come back, and they overspend because they don't manage the project. They just don't stay on top of it. Well, they think I've got money to blow. It's not a big deal. They do have money to blow, and they do blow it.

Yeah. I mean, you know know oh gosh we built a house uh a large custom home several years ago country music artist a young one bought across built across the street from us our house literally was the was within 400 feet of the same square footage it was half the price and we built it in half the price, and we built it in half the time. Wow, because you were managing it. It was the artist. I'm going to be careful. Don't say names.

Don't name names. That person, that artist, had change orders stacked like phone books. We had two change orders and built it in 14 months. Because you build it on paper before you break ground, people. You manage the project and you manage your own expectations and you put together a project and a budget. It's called being a grown-up. Oh, man, it's bizarre.

It's a bizarre world. You've got to be careful with it. It's dangerous. I'm preaching to myself right now. This is The Ramsey Show.