The Ramsey Show - App - Budgeting Requires Discipline. It's Not Easy, But It's Worth It! (Hour 1)

Episode Date: March 11, 2019

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Music Music Live from the headquarters of Ramsey Solutions Broadcasting from the Dollar Car Rental Studio, 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. Thank you for joining us. Open phones at 888-825-5225. That's 888-825-5225.

Muncie, Indiana is going to start this hour off. Justin is calling. Hi, Justin. Welcome to the Dave Ramsey Show. Hello, sir. thank you for the call i appreciate what you do thank you how can i help so my uh so my so my family and i have been um following your program now for a couple years and um and so recently uh at church they have uh brought up the thought of uh to build a new building, like a community building, if you will.

So the initial thought was that they would go into debt for the building for about $150,000 is what they're talking. And so they've done a little bit of investigation between 5% and 6% interest. And so anyway, the church today is about $60,000 away from being debt-free, building and grounds and all. And so obviously when they were talking this, it was a nod from most people. And me and my bride said, oh, wait a minute, this doesn't feel right. Let's offer a new way to look at this. And so, if we were to tighten up the purse strings, if you will, we could have the building paid for.

We have about 15 families, and we do about 60,000 a year in our tithes and offerings. So we could have the grounds paid for in about a year and a half. So my question really is two parts. I hear you talk that you all work with churches, and I looked on your website. Is there a program similar to financial peace for geared towards churches and then the second question would be if i'm not mistaken you recommend 20 down for like a home would this also fall into that as well or um for for for building something like this. Right. Well, to start with, I try not to lose friendships or close relationships over someone doing something that I disagree with financially, like money stuff, okay?

So, for instance, I went to a church for many years that had debt on it. The church I currently go to has no debt. But I did not leave the other place because of the debt issue. You follow me? So, in other words, I have a lot of grace towards my Christian brothers and sisters that disagree with me, and they're wrong. But they could just be wrong, and we'll still be friends. So what would I do if I could wave a wand over your old situation having said that it's okay you do whatever you want to do it's your world um i do not recommend that businesses borrow money to buy a building to operate in their manufacturing facility. I don't recommend people buy a house with debt,

but it's the only thing I don't yell at them for. But that's a home that you live in. So a church building would be, from my perspective, more akin to a business manufacturing concern, buying a factory to operate their thing in. I would recommend they pay cash for that or not do it. And I would highly recommend in a tiny church like you're in that you guys not take on debt. You're going to cause relationship problems in those 15 families among you

because there's going to be financial stress on the organization, on the relationships, and you're going to cause a mess. This is a small, it's a micro church, I mean 15 families. And so the last thing you guys need is debt. It will mess you up in ways you don't even see coming. So I would save up and pay cash for whatever I did, and I would be debt-free first. And then i would save up and pay cash for whatever i did and i would be debt free first and then i'd save up and pay cash and that means you're going to build the community center differently and slower than you were going to if you followed my direction um if you don't

i um you know just from a practical having worked with we we've probably worked with 60,000 churches in the last 30 years, and we've seen every mistake they can make inside, operationally. And what happens is they tend to run the church more like the Chamber of Commerce than by the Bible. Sure. And so we tend to go, oh, there's a business guy in the church who's a smart guy. He's a car dealer. There's another business lady in the church who's a smart lady, and she sells whole life life insurance.

And they say, oh, everybody borrows money. We're just going to borrow money. And no one said, oh, I wonder what God says. So, again, I've looked on your your site and i couldn't find it do you all offer a program for churches to go through we offer a program to take the congregation through their individual finances and that's a church-wide financial peace university thing it but we don't have a thing where we say sit down and operationally show you how to run the church operationally it would be some combination of Financial Peace University and Entree Leadership, both of which will tell you, you know, don't take your organization into debt because organizationally you will be strapped and you will start making decisions based on what the bank needs rather than based on what God's telling you to do. You can't keep from doing it.

The borrower is slave to the lender. And you can't unring that bell 100% of the time, and you're setting the bride of Christ up as a slave to a bank. And I'm not mad at you, and I'm not saying you're going to hell if you do it, and I'm not saying you're evil people if you do it. I'm just saying you cannot find anywhere in Scripture God said, borrow money to make my kingdom bigger. Every single mention of debt in the Bible is negative.

100% of them, and there's thousands of them it's 2500 scriptures dealing with money and possessions every mention of debt it's not a sin certainly not a salvation issue but you just cannot go you know larry burkett used to say you can't find anywhere that says okay the amalekites had the israelites him down in a valley they were getting ready to slaughter them massacre them and so they You can't find anywhere that says, okay, the Amalekites had the Israelites, him down in a valley, they were getting ready to slaughter them, massacre them, and so they did a bond issue. It's just not in there. There's no time God used debt to bless his people.

There's not a single positive reference. You really have to think about that if you're a Bible-believing church. Now, if you're a church that doesn't see Scripture the way I do from an evangelical perspective, which is much more literal, and if you see it more as allegory, then you can make up whatever the crap you want to make up at that point. Just make it up and go, I don't like that, and so I'm going to do that. That's fine. Go ahead. But if you're going to try to read the Word of God and say, what does it instruct me to do,

then you're going to have no place in there that you find dead is a good thing, that God used it to further his kingdom. It's man doing what man wanted to do at man's own timing. Are high health care costs getting you down? Are you confused trying to navigate your options? Do you wish you could find an affordable biblical solution to your healthcare costs? Based on New Testament principles, Christian Healthcare Ministries, or CHM, helps Christian families, churches, and ministries join together as the body of Christ to share their major healthcare costs. Christian Healthcare Ministries is the original health cost-sharing ministry. A Better Business Bureau-accredited organization, CHM members share to pay each other's medical bills. It's not insurance. It's Christians financially and spiritually

supporting each other. It's what Christian Healthcare Ministries has done for over 35 years. And our members have shared over $2.5 billion in medical bills. To learn more, We'll be right back. Thank you for joining us, America. We're glad you're here. Open phones at 888-825-5225. Kathy's with us in Dayton, Ohio. Hi, Kathy. Welcome to The Dave Ramsey Show. Hi, Dave Ramsey.

Thank you for taking my call. Sure. What's up? I have a quick question for you. I'll try to make it quick. My husband and I are in baby step two. We had a total of $102,000 worth of debt, and we are down to about $98,000 now. My question is about the—sorry, I'm, like, nervous.

My question is about medical collections. I have $2,100 that was pushed to medical collections because I couldn't make the medical payment they wanted me to make. And I wasn't sure about adding them into my baby step because they are only $2,100 and our largest debt is $21,000 with the school loan. Okay. Well, definitely going to put them into your debt snowball for sure. What's your household income? Our growth, we grossed this last tax, we did about $65,000. Okay. And how much are you planning to pay off in a year? I mean, I'm just kind of doing it paycheck to paycheck right now. You need to go ahead and lay it all out and say,

how long is it going to take us to get out of debt? If we do $30,000 a year for three years, we're debt-free. Yeah, about three and a half to four years. My work did just offer me some extra overtime. Which amounts to $2,500 a month. Yes. Okay, and so how many debts do you have smaller than $2,100 um right now would be my husband's medical debt which we have down to $500 now which we should pay off by the end of this month and then work to my son's medical debt okay and how much is the medical debt on your son?

That would be almost $2,000. Okay. So if you're paying off at the rate of $2,500 a month, this $2,100 is going to be paid off in the third month? Yes. Okay. Then it just doesn't matter. So I wasn't sure whether or not we throw it out there or, yeah.

Yeah, you put it out there and you pay it. I mean, let's get it done. You owe it. And if you want to call them and ask them, you know, for a discount or something and get it in writing, that'll be fine. It sounds like this is disputed and they're, you know, they're bugging you about it. And so, no, we're not going to pay monthly on it. But in somewhere around 90 days, we're just going to write you a check and i need to get from you in writing what you will take um you know in the month of may i will pay you and what will you take in the month of may for this debt and get that in writing and then

send them a check for that amount andrew is with us in boise idaho hi andrew welcome to the dave ramsey show hi dave thank Thank you. How are you doing? Better than I deserve. How can I help? So my fiance and I just purchased a financial piece, and we haven't even received a workbook yet. So we're waiting on that. But we're really excited to begin this program. We've already finished Baby Step 1, and we've paid off about two or 3000 in debt so far.

So we're in baby step two. Um, but we've noticed with the budget, we've been having, uh, kind of some issues with when we, when we get paid versus when our bills come out. And when our bill, uh, when our bills come out, we're a little short on money, and then that has to last us for two weeks. And so I was kind of thinking, what would your opinion be on us kind of going back to baby step one and saving an additional month's income and then at the start of the next month roll that in at the beginning of the month so we have an entire month's income at the start of the next month um roll that in at the beginning of the month so we have an entire month's income at the start of the month it's not really it's not really baby step one you've

just got a structural problem you're a little behind on your bills and you need to get current on them and that's all it is you've just got to get back to the front end side of that and don't be paying her debt until you're married and she doesn't need to be paying her debt until you're married, and she doesn't need to be paying your debt until you're married. When's your marriage date? August. Okay, good. Well, until then, y'all can do a pretend budget together so that you can have the discussions and the communication, but don't be paying each other's bills until you're married. That's really, really hard on the relationship.

It's also dangerous. It's also just not smart on about ten different fronts so don't do that but aside from that as you're working on it together what do you do to fix this problem you've got to get on the front side of it it's not really save up the money it's just a matter of you've got to tighten your budget down you don't pay any extra on anything until you get your um your your paycheck aligned with the actual bills. And what this means is that you're not behind on your bills in the sense that you're paying them super late, but you've not got any room in your budget to exist, which means you're about a half a month behind on your budget. You're not a full month behind.

But you've just got to get two weeks ahead or three weeks or two paychecks if it's weekly ahead rather than two behind, which is about what you are right now. And that's just a matter of manipulating the budget in the first few months that you're doing it to get squared back around on that. So good question. Very good question. Congratulations on the upcoming marriage. Open phones at 888-825-5225. Scott is in Salt Lake City. Welcome to the Dave Ramsey Show, Scott.

Hi, Dave. It's a pleasure to speak with you. You too. What's up in your world? Well, I'm 28 years old. My wife is 29. About a year ago, we got onto Zander and got ourselves some term life insurance. They're 20-year terms, and we did that with the intent that hopefully in 20 years we'll have enough in my 401k

that if I were to pass away at that time, then my life would be covered by living off of the interest. But it occurred to me that she'll only be 49 at that time. I'm wondering if there would be any penalty for her to draw from a deceased spouse's 401K interest. Yes, there would be. But what will happen during this 20 years is that your 401K will not end up being your only method of building wealth. Because if you look up and realize that in order to drop my insurance at age 50, I've got to cover nine years of expenses without penalty, then you're probably going to do some investing outside of retirement as you reach the back end part of this equation. So for today, I wouldn't sweat it.

But long term, the philosophical answer to your question, in other words, at the 15 or 17 year mark, you're probably going to open up another mutual fund and just start dumping some money in there. It's called bridge investing, to bridge between the time that you need the money and the time that's there. Of course, the other thing you can do is just take the risk and say, for nine years, I'm feeling pretty good. Worst case scenario, if I did die, then she'd have some penalties, but I'm not going to worry about it. And that's actually what Sharon and I did. I didn't have any side.

By the time I got there, I had side wealth. But by the time I reached the point that I was self-insured, I did not have side wealth. We had this business, and we had a little bit of real estate, but not a ton. Most of it was in my 401K. So she might have actually had to cash it out. I chose to keep the insurance, too, by the way. I'm not saying you should.

It's not smart. I just do it because it's SWI. Sharon wants it. But there's no real financial planning need for me to have life insurance so um anyway aside from that uh i you could just take the risk on the penalties if you wanted to but what will more than likely happen is is that you're going to have wealth that's beyond your 401k by the time you get there that would take care of her and cover her for that nine-year period of time until she's 59 1⁄2.

So, hey, good question. We appreciate you joining us. Open phones at 888-825-5225. Ray on Twitter says, Dave, you say a mortgage should be no more than 25% of your take-home pay. Does that include taxes and insurance? Yes. That's your mortgage payment. Principal interest, taxes and insurance, HOA fees.

Does not include utilities. The point here, Ray, is not some detailed, fine-tuned, fine-hair, parasitical formula. The point is, don't have a house payment so big that you can't do nothing else. And that's what most people do. It's called house poor. And that's what most people do. It's called house poor. And that's what the 25% guideline is there for, is to wake you up and say, don't be house poor

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That's DENTAL, D-E-N-T-A-L to 77-948. In the lobby of Ramsey Solutions, Jason and Gabrielle. Gabrielle are with us. Hey, guys, how are you? Good. How are you doing, Dave? Better than I deserve. Welcome. Where do you live?

Taylor Mill, Kentucky. About 10 minutes south of Cincinnati. Oh, perfect. Well, good to have you guys. Welcome. And you're all the way to Nashville to do a debt-free scream. Yes. Very Well, good to have you guys. Welcome. And you're all the way to Nashville to do a debt-free scream. Yes. Very good. How much have you paid off? $70,815. Love it. And how long did this take? 17 months. All right. And your range of income

during that time? Started at about $100 and went up to about $120 now. Wow. What do you guys do for a living? I'm a statistical programmer. And I do risk management. Very good. Welcome, guys. Good for you. Congratulations. How long have you been married?

Four years. All right. So about halfway through your marriage, something happens and you get a little wake-up call. What changed your mind and made you decide to get out of debt? Well, he told me like years ago about you, and I was like, okay, whatever. We're fine. We're making our payments. We're fine. And then one day I was bored at work, and I was looking at podcasts, and I saw yours, and I decided to start listening to it for a few days, and then I told him about it, and he was like, yes, let's do this. And that's

pretty much how it started. The podcast, huh? Yes. Wow huh yeah wow look at that well good for you guys what kind of debt was the 71 000 student loans a heloc that we got about two months before we started listening to you which was a consolidated student loans um my car phones and credit cards all right so all mine all yours okay so you brought it all into the marriage yes and but both of you are like math people yeah right for your for your careers so you know you had to be looking at this going this really sucks yeah yeah it's one of those things i grew up with never really having debt my parents did the envelopes they did the budgeting before the dave ramsey method really was out there so it was something i wasn't really used to and i just kept looking at it where is all our money going to the bank yeah yeah okay cool cool and so

gabrielle comes home and says i'm listening to this podcast you go yeah this guy was telling you about let's do it game on and it was You go, yeah, that's the guy I was telling you about. Let's do it. Game on. And it was that simple. Pretty much. So what's the key to paying off $71,000 in debt in 17 months? Every dollar and doing a budget. That was one where once we did our first budget, we were like, wow, where was all this money going?

And we figured it out. And I think discipline i mean it's not easy to stick to the budget when your envelopes are empty for the month you're tempted to go out and well we can take money from this and and just keeping it on track and um nothing nothing worth doing is ever easy is the way i see it so well you're exactly right about that. That's pretty cool. So what do you think allowed you guys or caused you to have that discipline? Because discipline is not a natural state. It's something you have to use your mind to create. What caused you to be able to do that?

I mean, for me, it's our two little kids that we have. I mean, there's nothing more important than them. So we needed to get things right financially to make sure that they're set up for the future. So change your family tree, take care of your family. Absolutely. Yeah. That's a noble cause and that's enough cause to go, okay, I can say no to this. So I can say yes to that. Absolutely. I'm going to live like no one else so that later I changed my family tree. Exactly. Good for you. Good for you. That's good.

That's good. You guys are rock stars. Well done. Thank you. How does it feel? It's amazing. Awesome. No payments?

Yeah. It's pretty incredible. I mean, since we made the last payment, we've had HVAC repairs. We've had car repairs. We've had a fridge breakdown. We've had medical expenses from the birth of our second child. And it's been so nice to just be able to write a check, not worry about it. Yeah. An emergency is an inconvenience when you have the money. Absolutely. And one thing that we learned from listening to your show is just asking

if you can get a discount for paying it up front. So I called and I was able to get 25% off of one of our medical bills. So it took it down quite substantially. Wow. Yes. Just ask. Yes, definitely. Oh, we did.

They won't give it if you don't ask. Yeah. And that's the truth when you're buying stuff and everything else, paying a bill, whatever it is, you just ask, and it's amazing what you'll get. Yeah. Very, very cool. Who are your biggest cheerleaders outside the two of you? Definitely, I'd say our parents.

All of our parents. I mean, like I said, my parents were kind of doing, have done the method forever. So, but her parents were very supportive as well. So really just, I'd say our parents. Yeah. Very, very cool. And you brought the kiddos with you to do a Dead Free Scream. We did, yes.

What are their names and ages? We have Wesley, who's two, and Ramsey, who's seven weeks old. Who? Ramsey. Ramsey? Yes. And that's got to be a family name of yours somewhere. No.

No. Oh, no. Now it is. Yeah. Oh, my gosh. Well, I'll have to come out and get my picture made with Ramsey then. That's too much. That's cute. Well, you guys are incredible. out and get my picture made with Ramsey then. That's too much. That's cute.

Well, you guys are incredible. Very well done. We're very proud of you. Thank you. Thank you. I got a copy of Chris Hogan's book for you, Everyday Millionaires. You're on your way to being one. And before you know it.

So, well done. And thanks for visiting us from all the way down from the Cincinnati area. Jason and Gabrielle, Wesley and little Ramsey, $71,000 paid off in 17 months, making $100,000 to $120,000. Count it down. Let's hear a debt-free scream. Three, two, one.

We're debt-free! We're debt-free! That's how we do it. Love love it love it well done excellent job you guys excellent job our question of the day comes from blinds.com find out for yourself why blinds.com is the number one online retailer of custom window coverings. You get free samples, free shipping, and new promos all the time to get deals. Make sure you use the promo code Ramsey. Yeah, there it goes again, to get the best deal. Today's question is from Alyssa in Missouri. Dave, we have about $17,000 worth of student loan debt. It's under our parents' names that we've agreed to pay.

My question is, where would that $17,000 fall on our debt snowball? Should we pay off our own debts first, put it at the bottom of the list, or include it in the debt snowball? If you've agreed to pay it, morally, practically, you've accepted the debt. Technically, legally, you have not accepted the debt yet, but you're going to pay it. I would just put it in the debt snowball. put it right where it's supposed to go, and I guess you start paying the payments until then, until you get to it. If you're going to pay it, you're going to pay it.

I'm guessing you already are paying the payments if you agreed to pay it. So, you know, it could be that simple. Good question. Hope that helps you. Open phones at 888-825-5225. You know, we have a whole lot of you that are 17 to 21 years old listening right now. I get that question, that email question, in the last 30 years a disturbing number of times where the deal with your parents on the student loans was unclear

your parents just took out loans took out loans took out loans y'all never have talked about it they thought you were planning to pay it you thought they were planning to pay it now everybody's mad don't go into student loan debt number one number two if somebody is in student loan debt or is going into student loan debt make sure that we have a very very clear understanding i'm not paying for this so if you're 18 and you're listening to me and your parents are going to go into debt to send you to school tell them don't do that. We'll find another way. Let's work together.

If they insist, tell them I am not going to be responsible for this debt. As a matter of fact, you can write it down, sign it, send it in an email to them, and keep a copy of it so if it comes up when you're 28 and you're married and your mother comes in and goes, I always thought you were going to pay this debt. No, you didn't. I sent you this email when I was 18. We had this discussion.

Because they'll try that crap, some of them. Some of your parents are children. And so do not go into debt and do not let someone guilt trip you into debt that they took on and want to drop it in the middle of your kitchen table. Now, this one, the guy just agreed to pay it, so he pays it. I'm fine with that. That's what he said he was going to do. Follow through on your word. I got no issue with that.

But the number of parent plus loans that the parents dump on a 20-something late in their 20s and their new spouse is ridiculous. I had no idea. My mom just dropped its and their new spouse is ridiculous. I had no idea. I just dropped it off and said, this is yours. What do you mean? Dropping off straight Sally Mays on my doorstep? You can take Sally Mays back with you. We'll be right back. Toronto, Canada is calling. Stephanie's on the line. Hi, Stephanie.

Welcome to the Dave Ramsey Show. Hi, Dave Ramsey. Thank you so much for taking my call. Sure. What's up in your world? Okay, so I have a quick question in regards to life insurance. Five years ago or six years ago, when I was 20, I'm 26 now, I got whole life life insurance. And I'll explain to you my thought process. When I got that life insurance, I was seeing my parents life insurance, their term policies every 10, 20 years,

their premiums were going up. So I got whole life insurance for $200 for $750,000. And I thought, okay, so if I'm only going to pay $200 for the rest of my life, you know, and I die at the age of 90, I would have only paid $150,000. And, you know, for my kids, future kids, they would get back $600,000, you know, $50,000, let's say, or $600,000. But now that I'm older and I found you six months ago and I've, like, changed my whole thought process about financials, like, everything, I just wonder if it's better if I take that money or that $200,000 a month and do compound interest in a mutual fund better than having the life insurance. Yes. Yes, right?

You're better to do investing, not do life insurance. Don't ever use life insurance as an investment vehicle. It doesn't work because they're statistically designed for them to make money. An investment, you own something. You don't own anything in life insurance. Yeah, that's what I was kind of thinking. I was like, okay, now that, okay, if I put that $200 a month towards investment instead of that life insurance, I mean, I already have right now, I'm 26, I have $50,000 for retirement already, and I'm not touching that.

I'm in debt right now. Maybe step number two, I have like $15,000 for a car and a credit card that I'm paying off like in the next like six months at night even. So I thought, okay, let me maybe stop the life insurance. Are you single? Yes. Okay. Do you have anyone that counts on your income to eat if you were to die? No. Okay.

So your need for life insurance would only be to bury you so somebody else didn't have the expense. Exactly. Do you have any money saved? Do you have $50,000 in retirement? Correct. Okay. Just instruct your mom or dad that if you die, use that money to bury you and cancel this policy.

Okay. And then later on when you do need life insurance, because you've got a family that's counting on you in some way, or someone that's counting on you financially, at that point buy 15 to 20-year level term life insurance. Kendall is in California. Hi, Kendall. Welcome to the Dave Ramsey Show. Hi, Dave. Thank you so much for taking my call.

Sure. What's up? So I have a question for you. So my boyfriend and I are wanting to do a business by the end of next year, so we want to open up an Orange Theory Fitness franchise, and we'll each need $50,000 in order to open that up. And so right now I'm contributing about 20% to my Roth 401k through work, and then I also maxed out my Roth IRA.

And I'm just curious, so should I keep contributing the 20% to my Roth with work and pull out from that to do the business, or should I back off on that percentage a little bit and put more towards just my regular savings account and not pull out from my Roth for that? Well, there's several things going on here, but let's just assume we have a goal that we need money for that is a big goal and it's extremely important and we're going to do it.

If we assume all of that, then you might stop everything temporarily and pile up the cash. No, I never cash out retirement to do any of this. The only time I would cash out retirement for somebody is to avoid bankruptcy or foreclosure. That's not the case here. Okay, the case is you need $50,000. What's your income? I gross about $80,000 right now. Okay, all right.

So you'd be hard-pressed to come up with $50,000 from scratch? I mean, from scratch, yeah. I only have about $6,000. That's not in any retirement. That's just in my fidelity. Yeah, you'd be hard-pressed to do that in the period of time you're talking about. You're going to have to really, you're going to work extra, you're going to live on beans and rice, but okay. Now, so you're telling me though, that you're going to open a fitness center and you need a hundred thousand dollars to do that.

And you're going to make how much doing that? So it varies depending on which location you choose to open it up in, but it's roughly from $120,000 to $300,000 that you would make yearly. Gross. Yes. Net? How much? Well, I'm sorry. I'm sorry.

Let me back up. So it's actually a million gross, and then it's $200,000 to $300,000 for net. You're going to open a fitness center for $100,000 that's going to gross a million year one? After year one. A fitness center? Yes. It's an Orange Theory fitness center, yes. A what?

It's called Orange Theory Fitness. I'm having trouble not understanding the name. I'm sorry. That's the brand name? Yes called Orange Theory. I'm having trouble not understanding the name. I'm sorry. That's the brand name? Yes, Orange Theory. Orange Berry. Speary. You know it?

Orange Theory. Oh, okay. I'm sorry. It's my hillbilly ears. They can't hear your California accent. Okay. Orange Theory. And there's how many of these operating?

Oh, I mean, there's over 600 locations in the United States. Okay. Everybody in the booth. I'm apparently the only one in the whole building that doesn't know this exists. Okay. Yeah. I mean, I've seen maybe two fitness centers in my 40 years of life that would do that kind of numbers.

So I'm a little bit blown away away and i kind of think you're getting hot air blown in your ear but um i really want you to look at this a lot a lot more due diligence and not just use their their top producing location as your pro forma model um because and i also am having trouble believing they're going to let you do this for a hundred grand if it's going to make a hundred grand profit in year one or year two um that's highly unusual as well so anyway i'm not an expert on those things i do know a lot about business and i've done a lot of business transactions and the numbers you're giving me don't pass the smell test. So that means I think if I were going to answer a question you didn't ask, I want you to do a lot more research and a lot more due diligence, and I want you to understand this a lot more than you do today.

And, yes, I definitely want you to pay cash. I definitely want you to pay cash. And, no, I would not use my retirement. So I hope that helps you get started. Sorry I didn't recognize the brand. I'm just not, my cool factor is pretty low these days. Open phones at 888-825-5225. The people in the booth are smirking at me.

Look at you two smirking about my lack of cool. When you have a home gym, I guess it doesn't. Well, yeah, I mean, I just put on my tennis shoes, run down the street, but not often enough. So there you go. It's good. Sharon belongs to one of the big deal ones, but it's not that brand. We don't have that brand here, I guess. Oh, we do.

See, I need to get out of the house more, don't I? Okay. All right. Oh, well. So I know nothing. I'm an absolute idiot about this. Okay. We've established that.

Open phones at triple. About this I am. Apparently I didn't absolute idiot about this. Okay, we've established that. Open phones at triple. About this I am, apparently. I didn't even know the stupid thing existed. Certainly never heard of numbers like that being produced. Maybe one chain. I've seen a few of them that are doing stuff like that. Freaking Taj Mahal of workout places. And you're not building that place for $100,000.

I'll just tell you. The place I'm thinking of. So, anyway. Open phones at 888-825-5225 thank you for joining us open phones here we appreciate you being here um jonah's on twitter dave do i need any long-term disability policy outside of my employer provided benefit probably not it's probably fine um the thing you do want to remember with an employer-provided benefit is if you do not pay for it with pre-tax dollars, if you pay for it with after-tax dollars or they give it to you for free as a benefit, your disability income is taxable.

We provide disability insurance, long-termterm disability as a benefit here but it when we've had like two times in all the years that someone actually went out on long-term disability three times now um then their income on the disability policy is taxable because you didn't pay for it with after-tax dollars if you buy it in a pre-tax plan or if your company provides for it, if you become disabled, that income is taxable. And that's the only thing you want to remember about the long-term disability. It's not a big deal, but it does come up in the issue. It's part of the issue.

So thanks for checking in with us, Jonah, on Twitter. That puts this hour of the Dave Ramsey Show and the books. Our thanks to James Childs and Kelly Daniel in the booth. I am Dave Ramsey, your host. We'll be back. This is James Childs, producer of the Dave Ramsey Show. Once again, you made the Dave Ramsey Show one of the top five most downloaded podcasts last year. To get your daily dose of motivation and inspiration, subscribe today.