The Ramsey Show - App - Avoid the Hassle Factor with Mutual Funds Over Real Estate (Hour 2)
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Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios,
it's the Dave Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage
has taken the place of the BMW as the status symbol of choice.
I am Dave Ramsey, your host. This is all about you.
This is a show that's called the Dave Ramsey Show.
This is about my opinion opinion and i'm pretty much
an expert on my opinion but we're here to help you we are here to serve you we're here to cause
you to be inspired and informed so that you do better at whatever part of your life it is that
you and i are going to work on today the phone number is 888-825-5225 that's 888-825-5225
daniel is with us in charlotte north carolina welcome to the dave ramsey show daniel
hey dave how are you better than i deserve what's up well um got a what would dave do question on
if i should sell my house. Okay.
I bought the house before I started listening to you. It's an on-frame modular, which is similar to a double-wide, and I owe $46,000 on it.
I own the four acres that is underneath it, and I'm paying PMI on a 15-year mortgage at 3.75%,
and I'm in Baby Step 456.
What do you owe her?
Should I sell the house now?
What do you owe her?
46.
Okay.
And what's your household income?
Right at $60,000.
Okay.
Well, there's several grades and points along a line of modular homes, okay?
There's the super cheap bad trailer in the trailer park on one end right and uh and everybody knows what that thing's going to do it's going to
go down in value like a car you sleep in you know what i'm saying right then on the other end of the
spectrum when we say modular homes a lot of modern home builders buy or engineer even wall sections, certainly floor sections.
Many times some of the rafter sections and so forth are modular in that they're pre-constructed in a factory and delivered on a truck bed.
And then they're stood up and tied together. So a lot of homes that people think are built traditionally are very much modular homes
because there's modules that are pieced together, but you cannot tell that they're modular homes.
And in some cases, they're actually stronger than a traditional stick-built home
because of the engineering on the wall systems and so forth.
That's the other end of the spectrum.
That would be the Cadillac end, you know what I'm saying? The Bentley end of modular housing.
So here's the thing.
My only point about, quote, modular housing or trailers or whatever you want to call them in these different situations is if you can drive up in front of it, if the typical person can drive up in front of it and they think to themselves, that thing came in on a truck.
You know what I'm saying?
Yes.
If they think that, then it's not going to go up in value
as much as a, quote, traditional house.
Would you agree with that statement?
I agree with that, and that's probably what my house is.
Okay.
And so I don't know what portion of it came in on a truck
or if the whole thing came in on a truck and then we sat it on a fixed foundation or whatever but if the if it looks like
inside when i'm walking through it and i'm looking at the trim package and i'm looking at the the
plumbing fixtures and i'm looking at the exterior and the way the thing is shaped and so forth
and i think to myself this thing came in on a truck 90 of the time that's not
going to go up in value like a traditional home would sitting on the exact same piece of property
and if that's the case then that's not a property i want to hold as i want to buy real estate that's
going to go up in value so if you had the exact same amount of money invested in another piece
of real estate that didn't look like it came in on a truck it would go up in value more and so i don't think anything's
on fire here but if that's how your house lands and you just said it does then um sometime in
the next four or five years it might be next year it might be this year it might be five years from
now sometime in your process you're going to want to own a different piece of property because you're going to get better appreciation on it that's my only
thing about it and again the house you're in maybe it could be a fine property it could be more than
adequate for your family it could be very structurally and engineering wise very sound
i'm not i'm not putting down trailers or modular houses i'm just observing
is the thing going to go up in value as fast as something that doesn't look like it was brought
there on a truck bed and that's all we're talking about here i've got friends that own these huge
mobile home manufacturing things and they're always like dave you don't know what you're
talking about my mobile homes and we you're right don't, as far as engineering parts and how nice they are.
Because when I was a kid, you know, it was just trailer.
It was a trailer.
We didn't call it a mobile home.
It's like a domestic engineer.
It's a housewife.
You know, I mean, it's just like janitor.
You know what I mean?
We have to come up with all these euphemistic names.
It's a mobile home.
Okay, great.
That means it's a house that can leave on a trailer.
It's mobile.
Okay, that tells you something.
It is a trailer or it will leave on a flatbed.
And so if you're in that business, I'm not mad at you,
but the data in the marketplace says the marketplace does not respect your product
like it does a traditional stick-built home.
And so if you're building a modular home folks in such a way that the typical
person can walk up to it from the inside the way the trim package and the plumbing package and the
kitchen is set up or from the exterior and it looks like a glorified trailer then you're not
going to get the appreciation on it that's just common sense it's not it's not putting anybody down it's not i'm not mad i'm not trying to put the i'm not
saying mobile homes are ripoff but the traditional mobile home on wheels the little tiny wheels and
they roll it up and they put a little you know picket fence around the edge of it that sucker's
dropping like a rock and some of you are buying 70 000,000, $80,000 versions of those in double-wide or even more,
and then, you know, 15 years later, is that thing worth $200?
No, it's worth $10.
It's going the wrong way.
That's a car you sleep in.
I mean, that's all it is is going down in value.
And so you've just got to think through that stuff, and that's what Daniel's asking about. So, Daniel, good question.
I hope that gives you the decision-making tools for you to look at your property. wouldn't panic on yours i don't think yours is yours might not even be going down
it might be going up it's just not going up as fast as another property of similar value
that does not have those characteristics that's what you're looking for it's the same thing in
the one of this little house movement whether it's little house? Is that what they're calling them? What do they call them?
Tiny house.
The tiny house movement.
Little house is bigger than the tiny house.
There's another movement you all don't know about.
It's called the little house movement.
I just made it up.
But the tiny house movement, which is like a glorified doghouse, right?
It's a doghouse with an air conditioner.
And everybody wants to live in the tiny house.
And the tiny house movement.
Well, the problem with the tiny house movement well the problem with
the tiny house movement is basic economics there's not many buyers and when there's not many buyers
chasing a good supply of items the supply of items the you know supply versus demand
causes that item to not appreciate or to actually go down in value. But when there are a few items with a lot of buyers chasing them,
like there is in real estate right now,
you put a house on the market right now, a traditional home in most markets,
most major markets, you don't have a, not only have an offer by the end of the weekend,
you have multiple offers.
Some places you get a freaking bidding war for your house right now.
And what's that causing real estate prices to do?
Go up.
Because you have a large number of buyers chasing a few number of sellers.
And anytime you have that,
it's basic supply-demand economics.
You were supposed to have learned that in the 7th grade
back when they taught the right stuff in the 7th grade.
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Solange is with us in Richmond, Virginia. Hey, how are you? Hey, Dave, I am
overwhelmed and confused. What's up? My husband and I are drowning in debt.
Stop, stop, stop, stop. I can't understand you. You're not speaking directly into your phone.
Okay. Can you hear me now? Yes, ma'am. Thank you.
Okay.
My husband and I went from three incomes to two incomes a couple of months ago.
This past weekend, we did, we voted out our debt snowball and our budget.
And we are in the red.
We have two personal loans that we consolidated from a five-year term to a three-year term a year back.
So our payments are really high, and we can't afford them.
So I called the bank to see if there was something we could work out,
and of course they said there's no help that they can offer us.
So I don't know.
What is your household income and who lost a job?
My husband lost one of his jobs.
Our household income right now is $97,000.
$97,000?
Yes, a year.
And how much debt do you have that is not on your home?
We are $172,000 in debt. Okay. And break that down for me. Okay. We have 16 credit cards,
16,000 credit cards. We have a 10,000 car loan. Car loan. Okay. We have 48,000 in student loans, $46,000 in personal loans, and we have a $50,000 family loan.
Okay.
All right.
And you've got payments set up on all of these?
Yes.
And how much is your house payment?
It's $1,299.
Okay.
That's not the problem.
All right.
Have you cut up the credit cards?
Yes.
Okay.
Are the student loans on hardship deferral?
No.
Are you paying the family back systematically?
The family, we are not paying back right now.
Okay.
So you're really only paying payments on $122,000 worth of debt?
Correct.
Okay.
All right.
Including your student loans, your car, your personal loans, and the credit cards.
97.
Okay.
This is the first budget you've done, isn't it?
This weekend?
Yeah.
Okay.
So it sounds like you put stuff in this budget that needs to come out.
I mean, did you use the budget forms
and feel like you had to put something in every blank or something?
No.
No.
Wait a minute.
Are you guys putting money into your 401K?
We are not, no.
How big was your tax refund?
It was only about $2,500.
My husband has the health insurance coming out from his paycheck,
and we have kids.
It's the rest of the family of five, so we're heavy in health insurance.
How much is the health insurance um he pays about four hundred dollars i want to say that's not it all
right i can't figure out where this money's all going then we have three thousand um in the debt
category we had three thousand dollars in the debt category you know um The mortgage is... $1299, yeah.
$42.
We have the utilities.
I don't know.
I can't figure out where it's all going.
Because your take-home pay should be $7,000.
Is it?
We're bringing home...
No. We're bringing home almost $6,000 a month. Not quite $6,000. Is it? We're bringing home, no, we're bringing home almost $6,000 a month.
Not quite $6,000?
Not quite $6,000.
It's about $58,000.
We have our exemptions, maybe.
We have four exemptions.
It's five of us, so I don't think that would be it.
I know he's doing his health insurance.
I do not believe he's putting money into his pension.
Okay.
I think you need to look and see where all the money is going,
because $100,000 is $8,300 a month before taxes, okay?
And he's getting home with $2,300 less than that,
and that means your taxes would be and your health insurance would be thirty thousand dollars a year and that's not right or something wrong okay you're not getting home with enough money yeah
you're not getting home with enough money i want you to look at your statements and make sure the
401ks are stopped i would slap the uh student loans on hardship deferral and then i would start looking seeing what we can sell, and let's tighten this budget up and make sure you don't have anything budgeted for restaurants.
And, you know, are you over budgeting in a certain category?
And let's try to figure out where all the money's going.
You have a lot of mouths to feed, no doubt about it.
And I don't think this is a cakewalk.
I don't think it's easy, but it shouldn't be 500 in the hole.
That's throwing me off. Part of it is your take-home pay appears to be off just listening to it and so i'm
going to keep working on your check let's figure that check out let's keep working the problem
more and more detail more and more information keep combing the tangles out combing the tangles
out of the hair combing the tangles i wanted to straighten, combing the tangles out. I wanted to straighten it out. I'm going to go straight here and just get it to where it's very clear
where every dollar is coming from and exactly where every dollar is going to,
and we don't quite have that dialed in.
But the family loan you're not paying on today,
if you take the student loans and don't pay on them today,
then that gets you down to just a handful of debts,
and you can begin to knock out some of those credit cards, knock that car out, and then
reach over and knock those stupid personal loans out, and then work on the student loans
and the family loans as last.
Family loans are going to be last because they're the bottom of the debt snowball.
And if you pay nothing on them until you get to them uh by the time you get down there if
you don't have any payments but a house payment the family loan you pay the family off in no time
and that's what i'm seeing so anyway making 97 000 if you paid off 40 000 a year it takes you
four years and some change to get out of debt um and uh so we're going to have to increase our income, too, in this process.
And so he's back to looking for that other part-time job to be able to make this work.
You've got a lot of debt.
That's the biggest problem.
And I want it all cleared.
But right now, today, you know, if you don't pay payments on the student loans
because it's hardship for her, and you don't pay payments on the student loans because it's hardship for her and you don't pay payments on the uh the family loans we just got a hundred thousand dollars worth of the debt sidelined
until you get the other debt cleaned and so now we've got seventy two thousand dollars to knock
out how fast can we do that making 97 two years you should be down to the student loans and the
family loans in two years and then then it's going to get hard. It's going to get hard from there.
And so I hope that helps you.
I hope that helps the process.
You stick with it.
Keep beating on it.
And if I can help you further, you call me anytime.
This is the Dave Ramsey Show. Thank you. We'll be right back. Sid is with us in Dallas, Texas.
Hi, Sid.
Welcome to the Dave Ramsey Show.
Hey, Dave.
How are you?
Better than I deserve.
What's up?
I was just calling in to get your opinion on it.
I'm 26 years old, and I've saved up money to go into two different options,
either into the real estate market because Dallas is booming
and has a lot of growth that's happening, or go into mutual fund direction, right?
So I just wanted to get your opinion on which one you think long-term would be better.
How much money have you got saved? I have about $120,000 saved, and I
have had babysat seven where I've already purchased my personal loan, just our first house,
and already have paid down to 20%. Good for you. Congratulations. Very well done. Very well done.
Okay. Well, as you probably have already surmised, I always pay cash from the real estate investing.
If you're not going to pay cash, that changes the answer.
But if you're going to pay cash for it, real estate has a higher hassle factor than mutual funds.
You deal with these things called tenants and renters, and stuff gets torn up and stuff breaks down.
Roofs leak, heat and air goes out,
you know, stuff like that goes on.
And so you've got issues to deal with to manage the property.
So it's much more, it takes a lot more of your time.
So the hassle factor is a very real part of the discussion.
A well-purchased rental property, meaning you bought it at a good deal.
It's in an area that's doing well so that you can put a good tenant in it as opposed to some not good tenant.
And the property is in good enough condition that it's not causing you constant maintenance issues.
And it's going up in value.
It's a safe, good area, a well-purchased rental property
should give you a considerable better rate of return than mutual funds.
Typical mutual fund, I've got one mutual fund that's averaged 12.03% for 80 years.
Most of my real estate, including the tax advantages and the increases in value, when
you include all of that, that's called the internal rate of return,
the IRR on real estate.
Most of my real estate approaches a 20% IRR, but it has a hassle factor to it.
I have to deal with it, you know, and so it just depends on what you're up for,
what you have time for, how you're going to do it and all that.
But real estate, if it's purchased properly, again, properly purchased,
you buy a bad piece of real estate, it would be your worst nightmare.
But you buy a bad mutual fund, it can be a nightmare.
But a good piece of real estate, if you don't mind the hassle,
will make you more money.
Makes sense.
No, the thought there was the property would be aimed at purchasing
for real estate investment would be brand new to get rid of some of that hassle risk, which you're mentioning, right?
That would get rid of some of it, yeah.
But you still have to get the tenant to pay their bill.
Correct.
So I guess the other strategy out was would you suggest to do both, do mutual and do the real estate one, we get to a point where we can buy cash out?
I would suggest that you do both over time.
But I have ended up with a lot more of my personal wealth in real estate than I do in mutual funds for two reasons.
One is it's gone up in value faster.
And so, duh, the other one hadn't caught, hadn't stayed, hadn't kept pace.
And number two, I'm a real estate guy.
I've been in real estate business my whole life.
Mom and Daddy were in the real estate business.
I got my license when I turned 18.
I love real estate.
It doesn't – I can – I love it.
I just enjoy the process, the imperfect market, the fact that you can find a bargain, you know,
and I can smell one out.
And tenants – I love tenants.
We have great tenants because we don't let people that aren't great move in.
And so, you know, it's not any harder than that.
And the ones that aren't great, they got to leave.
So, you know, we have great tenants.
That's all that gets to stay.
And so, you know, we don't have any trouble with it.
We're nice to folk, and they're nice to us.
But some people, they have just all these nightmares.
They can write stories and books of bad tenant experiences, which means you're a bad landlord
because you let them in there in the first place.
So all of that to say, I love real estate.
I always have.
But I also believe in diversification.
So if you look at Dave Ramsey's net worth, it's composed of three things, the value of
this company, which is the vast majority of my net worth, a bunch of real estate, and a bunch of mutual funds, but a double bunch of real estate.
But it's because I bought it in 2008 for, you know, 20 cents on the dollar.
I mean, if you buy something for $2 million and, you know, what, 10 years later it's worth $20 million, it's easy to, you know, kind of throw off things, you know, and that's what it did.
So that's the thing. That's what it did so uh that that's the
thing that's what you can get into though and you can take that 120,000 150,000 bucks and get
started on that because you're you're on fire man you got a great start you got your house paid for
you're young you're being smart you're asking good questions just take your time be the tortoise
don't be the hare and just buy something that's smart don't get desperate
don't get in a hurry don't get you know all hot and all got the fever got to buy a house got to
buy i got this money's burn a hole in my pocket i got to buy a rental property and just take your
time man that's where the bargains come from is patience and just just keep poking around till
you find the right deal and i you know sometimes you go a while without buying something because
it's hard to find a deal right now in this hot market but that's okay that's okay hey good question mary's with
us in colorado springs mary how are you yes hi dave thanks for taking my call sure what's up
yeah i am sitting here with my 13 year old daughter and she is she loves to bake and she's
looking to um start a cupcake business.
And I was just curious, well, she was curious, I was too, how we go about doing that.
Like, what would her first step be?
What you would recommend.
Well, that's fabulous.
Congratulations.
I love that.
Oh, thank you.
Thank you.
I've got a friend named Cordia, and she is nicknamed the bun lady. I love that. gotten good for her uh so yeah you never know that lady lady-owned business has been a little
baking where it'll take you here this could it could work out for you so here's what i'm gonna
do i've got we've got it we've got a whole tool kit called the teen entrepreneur tool kit i actually
think i got the box laying here i do i do the teen entrepreneur tool kit that and that anthony
o'neill did our ramsey personality that speaks to teens. It's the Small Business Guide for Teens and Their Parents.
And it's a whole box of goodies to teach you how to start and set up the business
and how to run it, how to price it, how to market it, how to think about it,
how to set your goals, how to calculate your profits.
And then you start looking at how much you want to produce
and how much you do want to work because you want to control that.
Because the big benefit, Mary, for your daughter, your daughter's name is what?
Caitlin.
Caitlin.
Caitlin.
Okay.
The big benefit, Caitlin, is not the amount of money you're going to make now.
It's the lessons you're going to learn while you're making the money.
Okay.
So when I was your age, I was cutting 27 yards.
And I learned how to keep a profit and loss statement i learned how to work with people and make customers
happy i learned how to repair lawnmowers i learned how to weed eat and uh work i learned how to work
and be hot outside and get poison ivy. And I learned all of that stuff.
But you know what?
It's interesting.
I'm 57 now, and some of those lessons I learned when I was cutting grass when I was 12
are still part of how I run this business.
Like, I have no tolerance for lazy people, as an example.
A very low tolerance, in terms of being on my payroll, particularly,
because I outwork all of them.
And, you know, so you're going to learn a lot of great lessons right now.
It's not necessarily you're going to get rich at 13 years old,
but the stuff you learn may make you rich later because it may make you a confident business lady in the marketplace.
And, by the way, the area, the space that is exploding the most in business right now is small business side hustles that have grown into massive ventures by ladies in their 20s and 30s.
It's the fastest growing area right now is women in business that are confident, competent young women that are getting after it.
And it's a great market.
So I'm so proud of you.
You hang on.
This is a $49 toolkit, but it's my gift market. So I'm so proud of you. You hang on. This is a $49 tool kit, but it's my gift to you.
I'm proud of you.
You go make a bunch of cupcakes out there and learn a bunch of lessons while you're doing it.
Get after it.
This is the Dave Ramsey Show. Thank you. So that teen entrepreneur toolbox that I just gave away to that young lady.
You know, I remember asking my dad when I was a kid, I need some money.
And he said, you need a job.
You know what I'm talking about?
You had a dad like that, a mom like that, maybe a grandma like that.
I don't know.
So the Teen Entrepreneur Toolbox is a way that your kids can get a job.
Yeah, it's good.
It's good for them to learn to work.
But I'll tell you, the fastest growing segment in our economy right now, period,
overall, is the side hustle, the small business, the startup small business.
And when we do surveys of teens, the number one thing they want to learn is entrepreneurship.
It is very popular with the kiddos.
And parents want them to learn it.
That's what's interesting.
So the teen toolbox, the teen entrepreneur toolbox,
includes a step-by-step small business guide for teens.
And it can be doing anything
mowing grass babysitting doesn't matter what it is you learn leadership you learn interacting
with customers you learn self-confidence poise there's really good stuff when the kids do this
instead of uh you know being a full-time gamer you know it's good. It's really good. The Teen Entrepreneur Toolbox is $49.99, and you get $24 in free bonus items,
including a free audio book and e-book and a video by Anthony
that will teach you and your teen how to set these smart goals.
This thing's flying off the shelves.
It's been one of the fastest-selling things we've ever put out,
especially in the teenager space.
And the Small Business Guide for Teens, the Teen
Entrepreneur Toolbox.
Sadie's in Lexington, Kentucky.
Hi, Sadie.
How are you?
Hi, Dave.
Thanks for taking my call.
Sure.
What's up?
Me and my husband, we've been talking, and where we live, there's a house right beside
us, and it's on the market, about $84,000.
And it's butted up like right against us, and we have a fence separating us.
But we have been talking about buying that house, and you're going to think I'm crazy, but we didn't want to keep it.
We just wanted to tear it down and flatten out the land and maybe put a pool there. we live in town um so we kind of live on a busy street and stuff too but we were just
afraid if somebody bought that house that when they moved into it they would kind of run it down
and make our property go down but i have heard you talk about kind of over building up the
neighborhood like you don't want to make your house, you know, way more valuable than the other homes in the neighborhood.
So I was a little concerned about that.
When you bought your home, was that house there?
Yeah.
And you weren't worried about it then?
Well, no, but that's true.
Okay.
But we are wanting a little bit more space.
Do you have $84,000?
Well, that's what I was wanting to ask you.
Yes, we have it.
But I'm concerned about should I invest that, which we already are investing,
or do you think that we're financially capable of buying this?
Is your house paid off?
It is. Very good. Is your house paid off? It is.
Very good.
What's your household income?
It's between $95,000 and $100,000.
And how much do you have saved not in retirement?
$130,000.
Okay, cool.
Okay.
And so here's the thing.
Basically, you're going to lose money on this transaction in order to get buffer zone.
Okay?
Because if we take that house and tear it down and we put a pool there,
it does not add $84,000 in value to your home, does it?
From my husband's end, yeah.
And so you're going to lose money on the transaction.
Right.
But that's okay if you're willing to do that.
You can afford it.
You've got the money, and you're going to just lose money.
So what do lots in the neighborhood sell for?
Just regular lots?
Yeah, if you want to put a blank lot with no house on it on the market next door to you, that lot, what would it sell for?
What's the dirt worth?
Probably $20,000, $25,000.
Okay.
All right.
So we know later on you could sell it for $30,000 or $40,000.
So you're going to lose $50,000 plus the cost of the pool.
It'll go up in value, but you're going to lose somewhere around $50,000 on the transaction, depending on when you sell it someday.
What would you do?
What?
What would you do?
Would you invest that money, or would you do, like, if we didn't plan on, I'm 33, my husband's 36,
if we didn't ever plan on moving, which I know you really can't say that
because you don't really know what the future holds, but what would you do?
Given your net worth, i wouldn't lose 50 grand
today you have 100 if you if you told me you had a million three hundred thousand in the account
instead of 130 000 i might do it okay but basically what you're buying is peace of mind and space
you're not buying an investment there's no investment return on this.
It's a loss.
And so you're paying for the peace of mind of nobody being next to you
and the opportunity to put a pool in and have an expanded yard and so forth.
And that's okay to do.
The house that I live in, I bought the adjacent 20 acres for that reason.
Now, I paid dirt price for it.
In other words, I just paid for the dirt.
I didn't tear down a house.
And someday I can sell it, and it'll have gone up in value.
So it at least will go up in value.
But I didn't buy it as an investment.
I bought it so there were more trees between me and people.
That's why I bought it.
Would you do it with a net worth of like $650,000?
Well, that's your net worth.
That includes the value of your home and your 401Ks and your 33.
Yeah.
It's okay.
The question is, do you guys want to lose?
Let's just say you're going to lose $50,000.
You're just going to write a check and throw it out the car window
as you drive down the interstate for $50 50 grand in order to have this peace of mind.
If you guys can get there to where you're comfortable doing that emotionally,
then that tells you if you can do it or not.
Okay?
It's a throwaway money.
It's not an investment decision.
It's a lifestyle decision.
The same thing could be said, let's say this.
Let's say that you desired, one of your great desires in life was to go on a cruise
and take your mother and father and his mother and father,
and you were going to go on a cruise that was three weeks long,
and it was $50,000 for the three couples.
Okay?
Mm-hmm.
You can afford to do that.
I wouldn't, no.
Well, I mean, it's, well, you might not want to go with them, but.
Yes.
I'm trying to come up with some appealing scenario here.
I messed up, but.
No, I appreciate it.
Yeah, you see, the point is, can you afford to consume, instead of invest, 50 grand?
Yeah, you probably can.
Do you want to at this stage?
I kind of doubt it, financially speaking.
I kind of wouldn't.
But if you really, really, really, really, really want to do it, then do it.
You know, it's not a big deal.
And I own several lots adjacent to properties that I live in.
You know, my lake house, I bought adjacent lots to that, too.
Same thing, just to give me a distance between people and me.
I like people, but I like them when I want to like them.
Instead of knocking on my door at 4 in the morning.
And so, you know, that kind of stuff.
So anyway, it's the same thing, same concern you've got there.
Is somebody going to move in next door and trash the place?
And then you've got some goober hillbilly living next to you or something.
You know, you've got a problem with that.
So you've got to think through that.
And is it worth 50 grand?
It's more worth 50 grand to you than it is your husband.
I can tell that from talking to you.
But you cannot call it an investment.
You call it consumption, because I think we've established this transaction loses money.
So are you going to consume some money?
The money is likely never coming back to the tune of about $50,000, give or take here, in order to just have this buffer.
And is that worth that to you?
I'd be more tempted to just move than I would do that.
But it's up to you.
You can do whatever you want to do.
Good questions and interesting discussion.
Thanks for the call.
You know, that's one thing you do.
As I meet wealthy people, it's one thing they do.
They do what she was doing.
She was very wise.
Because she's asking a question.
She realizes it's an emotional decision.
And she's trying to work through it mathematically and emotionally.
It's good to do both.
And it's okay to do something on an emotional basis.
Just admit it. Don't act like you were smart. Just say, I wanted to do both. And it's okay to do something on an emotional basis. Just admit it.
Don't act like you were smart.
Just say, I wanted to do it.
Shut up.
And just admit it.
And that's called enjoying some of your wealth.
You're just admitting it.
You're just going, I just wanted to do it.
Shut up.
No other reason.
And that's a good enough reason if you can afford to write the check.
This is the Dave Ramsey Show.
Hey, guys, it's Kelly Daniel,
associate producer and phone screener for The Dave Ramsey Show.
And I was recruited for this job because I'm good at telling people no.
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