The Ramsey Show - App - Depreciating vs. Appreciating Assets (Hour 3)

Episode Date: May 8, 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. Rachel Cruz, Ramsey Personality, number one bestselling author. My daughter is my co-host today. Thanks for hanging out with us. Open phones at 888-825-5225. Claire is with us in South Bend, Indiana. Hi, Claire.

How are you? Hi, Dave. I'm doing great. How about yourself? Better than I deserve. What's up? Well, first, I just want to tell you really quick. I met my husband.

One of the first dates we had, he told me that his dad raised him with the Bible in one hand and a Dave Ramsey book in the other. That's how I kind of was introduced to you, so I thought that would be funny to kind of share. That's a little scary, actually. Well, it's led us on some good paths here. Good. How can we help?

Today, I'm calling. I wanted to ask you, as you both know, daycare costs are really high. We are expecting our second child in August, which we're really excited about. We both work, my husband and I, full time. And so daycare is our option in life right now. When it comes to trying to figure out in our budget, we're on baby step four, five, six, kind of like how to best budget for the upcoming expense of daycare. We are kind of at a loss with, we can't afford it, and that's not an issue, but it's where does it come out of? You know, we're trying to figure out with our budget,

does it maybe impact us putting, right now we're putting 15% each into retirement. For a season until my older son can go to a less expensive daycare, do we put maybe 10% into retirement each so we have a little bit more room to give to the daycare for our second child when he goes to daycare or, you know, kind of trying to figure that out. What's your household income?

We currently make $121,000 a year. Okay, so 15% is $20,000. Okay. Yeah. And daycare is how much? Right now we pay $311 a week for our son, so that's roughly, depending on the month, it could be between $1,500 and $1,200, $1,500.

But with the second child, we get a small 10% discount, and it could be anywhere between $2,100 a month to $2,700 a month at the daycare we're currently at. Yeah, so it'll be $3,000 a month is what you guys will be paying in daycare. And how much do you make a year? So I currently make $55,000 a year. And my husband makes, I think when I broke it down, it's $65,000 a year. Oh, that's right.

You said $121,000 a household. Yep, sorry. I had that number. Okay, that's great. Yeah, do you guys have, Claire, do you guys have margin in your budget when you budget month to month? Do you have money that you're putting away in savings just for other things? Is there, what does your budget look like? Yeah. So typically in a month we put towards

retirement and some other savings about $1,300. And then extra we have leftover over for, like, you know, gas. We donate to our church, groceries, household items, you know, utensils, toilet paper, things like that. So we do have, you know, we budget as close as we can with everything, but just trying to figure out when before baby comes and everything else, like how much more do we save um and then that only lasts for so long and again this is only for a short period of time because our son could go to a different daycare when he's four um the oldest and it would be a third of the cost so it's not going to be forever that we would be in this predicament but just for a short period of time

we're just going to be at a higher daycare cost. Yeah. Yeah. Yeah. I mean, I think in a perfect world, you're finding that margin other places and what that looks like, because that 15% is, I mean, that's a key part for you guys in the future. And so I don't know what other lifestyle expenses look like of shoring those up, maybe saying, hey, we've got to find some margin other places in that budget because I think that's the hard thing too, the reality of like, oh, my gosh, kids, they do, they cost a lot, especially when you're talking about something an expense like daycare. It is.

It's so pricey. So, yeah, I mean, in world you're gonna you would find that extra 1300 elsewhere but for you guys um you don't you know at that point though you don't have an option and for me for 30 000 a year i'm going to start looking at alternatives too i'm not going to just accept that as the only possible method yeah and that's something i started to look into as well um the One other option we discussed was not contributing to the 529 plan for a little while for our son because my mom's contributing. I'm talking about other daycare options. Yes, that too. We have looked at other daycare options.

Yeah, but $30,000. Yeah, but $300, $311 a week. I mean, that's pretty standard. I mean, that's not unreasonable. That's not an unreasonable amount. But it gives me a lot of thoughts when I start talking about $30,000 a year. I can start thinking about a lot of different things then. But yeah, I would look at all that. And I'm with Rachel. Probably one of the last places I would go would be to the retirement. I would do 529 before retirement. Yeah, I would. I agree. Okay, great.

Thank you so much. I'd pull that off. And then I really would, honestly, look at alternatives on the daycare because it's such an onerous amount as a percentage of your budget that they have priced themselves out of somebody who makes $120,000 a year. And that's – Yeah, they priced themselves out of it. And so you're not far from affording a nanny for $30,000.

I mean, not far at all. So, I mean, it can be done. I start thinking about it different. It's kind of like, you know, if you're going to charge me $120,000 a year for a nursing home, for $120,000 a year, I can hire a full-time in-house butler. Yeah, you can't do everything. And buy a reclining bed. Yes, I know, I know.

But I know her feel, and I've done the research even locally. Like the moms that work here at Ramsey. I'm like, it is. It is a crazy expense. And then you start, and then you do. You ask, for so many women, you ask the question, is it even worth it? Right? Because it's the $20,000 extra.

So instead of making $121,000, we make $100,000. Is that worth it? Right? I mean, like, you have to, you play out all these different scenarios, but it does. This part, though, it makes me, as a mom with little ones, it is. It sucks because they have trapped us. In a sense, it can feel like that with the prices. They go up as people, and it keeps going, going, going.

Well, there's a supply-demand curve. And people are paying it, so they're open. They stay open. They're paying it. Well, when price raises to a certain point, the volume comes down. That's supply-demand. And so they're reaching the top of this. Because this has been a discussion like 10 times in the last year.

Well, yeah. And it's like 37%. It's risen since 2020. I'm like, it's just crazy. It is crazy. So they do. They will end up – and that's what we talk to so many women that just end up saying, hey, I'll stay I'll stay home.

Right. Like if you have three kids. Right. I mean, you start to actually. I'm working 40 hours and after taxes and daycare, I net five grand. Right. Screw that. Right. You know, no, thank you. That doesn't make sense. Yeah. And she's almost there. She's almost there. Not quite with her numbers. But well, in the four year old will go to a less expensive school. Right. So you got to you got to light at the end of the tunnel. Yeah, exactly her numbers. Well, and the four-year-old will go to a less expensive school. You've got to light at the end of the tunnel with that. Exactly. I know, but that's so hard, Claire. So hard. I hope that's helpful.

Thanks for calling. This is the Ramsey Show. Reginald Cruz, Ramsey personality, is my co-host today. The best way to make the most of your money is by creating and sticking to a monthly plan. People that win plan to win, and that includes money, and it's called a budget. Your budget should give every dollar an assignment, every dollar a mission, every dollar a name before the month begins, and you and your spouse agree on it if you're married.

Every dollar is our budgeting app, the world's best budgeting app one of the largest these days millions of people joining in the last just a little it's crazy y'all thank you so much by the way it's an easy to use app that fits into your busy lifestyle you and your spouse can both have access to it see what's going on you can keep a pulse on your spending, make progress on your money goals. Download EveryDollar for free in the App Store or Google Play today. And you can even get it at EveryDollar online at EveryDollar.com just for your desktop if you want. Brianna is with us in Columbus, Ohio. Hi, Brianna. How are you?

I'm doing well. How are you guys? Better than we deserve. What's up? So, quick question. So I'm going to try to keep this short and sweet. So my in-laws are on one income, and my mother-in-law has not worked in about 18 years around that time.

And she's just been making sure that everything's taken care of at the house and so my father-in-law doesn't bring in all that much uh you know they they pretty much they're okay but they don't have any term life insurance no i don't believe they have anything for savings my father-in-law I'm concerned about him with his work because he does have a risk of more he's more at risk for injury because because of his health. And so my question for you guys is, you know, with us children and daughter-in-laws and such, is there something that we need to be doing in case something happens to my father-in-law? Just handling your money.

I mean, if you become wealthy, the wealthier you become, the more able you are to help right yeah and that's why i'm asking because i am i'm in my mid-20s and i'm trying to get a good handle on my money you know i'm starting the baby steps uh that's the best thing you can do for them okay is to get you strong the week can't help the strong can't help the week yeah and that's so how do you how would you recommend i'd best do this do i do a no just baby steps just go you go become wealthy if you've got money you'll have some money you don't have to have a parent account if you got a million dollars in a mutual fund and they have a problem you can help them

right yeah it doesn't have to be it doesn't have to have their name on it should I do a high-yield savings or no you ought to follow the baby steps exactly that's the fastest method to you becoming wealthy and the best thing you can do for them is for you to become wealthy okay but no you should not truncate your retirement savings and say or your kids college and say i'm not doing baby steps four and five instead i'm going to have a father-in-law account. No, thank you. No, no, no, no, no, no.

Yeah, and Brianna, have you guys talked to them about their money? Like, do you know all this for a fact? Is your husband, like, you guys know this? So we do know that they do not have really anything saved. Have they said anything about what their plans are? Is he just planning on working longer? He's kind of just planning to work until he can't. Okay. Yeah, and so, I mean, and too, I would say this too, Brianna,

I wouldn't be like overly stressed about it because at this point, you can't do anything to help. They can't help themselves, right? And nothing has happened yet. Right. It's not like, oh, my gosh, my father in law is now on workers comp because he got an injury. And my mother in law now has to go back to work. How do I help navigate the situation? There is no situation right now. There could be. So I think, you know, being wise about the people around you, the family unit around you of saying this is our life and this could be coming in the future um but right now today yeah i'm with dave you just yeah

you guys you and your husband you guys start doing this you start walking down the baby steps and if you have the ability to help if they need help then you guys get to choose that at that point will is in west palm beach florida hi will hey how are y'all doing better than we deserve what's up so quick question for you i'll keep it brief uh long story short i graduated college last may but i moved back home in let's see july last j. So I've been home, got a job in November. So I've been working. I make roughly $75,000 a year, bring home 4,400. I got my master's.

I let my mom handle all the finances for that. So in February, it was a little bit of a surprise to me that I was $70,000 in debt $70,000 student loan so I've been paying off those trying to throw about $3,000 a month towards us so I paid off roughly $6,400 I've got $35,000 saved up and I'm wondering that's in a high-yield savings account so I'm wondering would it be wise to put that towards it right now? Yes. Or just continue?

And in the same day that you do that, which is today, you take control of your own money. You have a master's degree. You're a grown man. Yep. You need to manage your money, not your mother. And then right after that, when you start talking about where a $75,000 a year college graduate's going to live that's not his mother's house. Correct.

So three things. Yeah, move out, take control of your life, and write a check and pay down the student loans. Ding, ding, ding, ding, ding, ding, ding. And all of a sudden, this stuff's going to start lining up for you like crazy. What's your master's in, man? Finance, investments. Okay, good. All right. And all of a sudden, this stuff's going to start lining up for you like crazy. What's your master's in, man? Finance. Investments. Okay, good.

All right, so you can handle this then, right? Oh, of course. Okay, good. I was going to be more wise. Yeah. Yeah, pay it towards the debt. Yeah, let's get the debt cleaned up as fast as you can. Good for you for $35,000.

I mean, you obviously took advantage of not having the rent to pay, right, living at your parents. You took advantage of it because you have it saved, which is awesome. I still pay them rent. Oh, you do? Okay. Well, I was going to say, you have $35,000 saved, so you're doing something right.

Yeah. You need to take over control of your own money immediately. You need to make plans to move out in the next 30 to 60 days and have yourself a life. And you need to pay down on student loan as fast and furiously as you can because your number one wealth building tool is not interest rates. Your number one wealth building tool is your income. And when it's not going to someone else in the form of debt payments, building wealth becomes fairly easy. Especially, Will, for a guy like you who knows numbers and has done a great job of saving money.

You did an amazing job, to Rachel's point. Well, and Will, I mean, at this season of life, yeah, I would do exactly what he said. I'd go get a part-time job. I would go drive Uber. I would do something four days, four nights a week and just make a crap ton of money right now and pay this off yeah get this knocked out as fast as you possibly can and just say for 12 months i'm gonna just work and get this get this out of here because um because it can be done and you're in the perfect season to do it right i'm like you really are you're um i find

you know there i mean i think it does get harder when there's another spouse involved, right? Because you got another person to consider. Then you have kids. And like, as you kick the can down the road, there's more elements to your life that you're having to consider. The bad news is when you're single, there's no one to hold you accountable. The good news is, is you don't have to mess with anybody else to make a decision to change

your life. That's right. You can just decide to do it. Yep. Today. It's great. Well, just like just like that let me say this i mean i feel like i feel for you will because he had no clue he had the 70 000 he said his mom took care of all the money stuff during college and then he realized oh my gosh now i have 70 grand is that what he said it kind of surprised him so parents

talk to your kids say it out loud. Have the discussion because that sucks. That happened to one of my friends. They went to pull a loan for a mortgage, and on her credit report, there was a student loan that they didn't know about. No one said anything about it. So communicate, parents. Communicate. This is The Ramsey Show. Rachel Cruz, Ramsey personality, is my co-host.

Jade is in Ottawa, Ontario. Hi, Jade. How are you? I'm good. How are you? Better than I deserve. What's up? Yeah, so I had a couple of questions. So this year kind of fell on a little bit of hard times when it comes to finances. So I have roughly $237,000 in debt. $205,000 of that is in a mortgage. And the rest is car loans, line of credit, and credit cards.

So I'm a single parent, and I am only bringing in roughly $3,500 a month. So the debt is starting to become overwhelming. I'm wondering if I should wondering when did you buy the house um i bought the house in 2018 so the house is worth about six hundred and thirty thousand dollars now because you don't make a ton of money the house doesn't sound completely unreasonable but my guess is what's your mortgage payment a month so um when i first got in the house i had a a really low rate um but now that i've had to renew um my mortgage payment has went from a thousand dollars a month to fourteen hundred400 a month. Okay.

Yeah, I mean, you're bumping up close to 50% of your income being your mortgage. Yeah, and then I had... Why did you not take a fixed rate mortgage? So I did take a fixed rate. I had um i had a fixed rate before and then when i renewed i took a fixed rate as well why would you renew if you had a fixed rate so here in canada you have to renew it's not like in the u.s so the rate So the rate adjusts each time you renew? Yes. So there's only variable rate interest rate mortgages in Canada. I did not know that. No, they're fixed. Well, it's not fixed if it goes up every year. No, you got to, when you renew, how often do you have to renew? So you can either choose a three-year fix or a five-year fix, and the five year is the maximum that you can hold a rate for in Canada. Wow. I just learned something. Yeah, unfortunately. Well, that sucks. I did know that. Yeah, I knew something around those lines.

Okay, Jade, do you see your income going up anytime soon? So the thing is, I have a business, and because of all the money that I've been spending, I haven't been able to put much into marketing for my business. So it's kind of been at a standstill. Is that your income as your business, or is that a side hustle? It's my business. Okay. So here's the straight-on solution, okay?

You either sell the house or you get your income up. Because you cannot keep this house with this income. It's not sustainable. That's where the stress is coming from. Yeah. In a car payment, credit card debt. I mean, it's not sustainable that's why that's where the stress is coming from yeah because i was in a car payment credit card debt i mean it's a lot well the car payment the credit card came because you couldn't afford the house and then when you can't afford the house you don't have any margin left to save so you rent stuff up on credit cards right exactly yeah yeah the house the house squeeze is showing up in the credit cards what do you do what's your business jade um so i have a commercial cleaning company okay so we clean offices okay because you're making pro i mean

it's around i mean 3500 a month right i mean you're you're bringing in 45 a year i'm just wondering if you can find something that you're making 60 right i'm like just any up are you are you fully booked um we're not fully booked okay i don't know why you have to spend money all you gotta do is go knock on doors and get you some clients yeah yeah so i'm i'm trying i've been trying to do that i've been a little bit busy with the work and my son but um that's definitely something that i'm gonna if you if you don't do that you're gonna have to sell your house i was thinking would renting it out be a good idea no you don't need to be a landlord you're broke that's a bad idea yes it's a really bad idea yes either get your income up or sell it uh because you know you and i think you ought to go get your income up that's what i think you

ought to do i think you're going to focus on this is a good i mean like you know, and I think you ought to go get your income up. That's what I think you ought to do. I think you're going to have to focus on that. Because this is a good, I mean, like, you know, $1,400 a month is not terrible, right? And now compared to income it is. But, man, if you can get that income up, then that, I mean, you're in a good spot. You have so much equity. If you could get to $4,000 a month from $3,500, it changes the whole equation automatically. And then you can start working your way out of the credit card debt, do away with those, and start living on a budget and being in control.

But no, turning yourself into a landlord when you're broke makes you broker. Landlords, you need money to be a landlord. You need cash. You need margin. It doesn't make you money. It's a problem at first, especially when you're this tight. Because this house is not going to rent for much more than your payment. So you're not, no, no, no, no, no, no, no, no. Don't go that way, please.

Stay away from that. Dima is with us in Baltimore. Hi, Dima. How are you? One more time. Let's try it no we're gonna put you on hold until we can get your phone straightened out riley's in salt lake city hi riley how are you how are you doing better than i deserve what's up awesome thanks for having me um i've just got a

question in regards to baby step two uh working're working Baby Step 2. We've got two car loans and they're both underwater. So I'm looking, we're looking to go down to one car for our family to try and speed this process up. But I just don't really know what to do in this situation where we're we're under what are your what are your numbers riley what's what what do you owe on the cars and how much are they worth so but we have a truck which is a dumb decision but it's it's got 36 000 left on the loan it's worth 31 okay and then we have a car um the loan's 8 000,000, but it's probably worth about $3,500. Okay.

And what's your household income? $90,000. Okay. All right. And do you have any money? Not too much, really. I mean, we just have the $1,000 saved up from Baby Step 1. Good.

Who said the truck's worth $31,000? I just collected Kelly Blue Book. Private sale or trade-in? Private sale. Okay. So you need $5,000. Who do you owe the $36,200 on the truck? Who's the lien holder?

It's just a local credit union. Perfect. Go down there, sit down, talk to them, tell them you want to sell the truck and sign a's just a local credit union. Perfect. Go down there, sit down, talk to them, tell them you want to sell the truck and sign a note for the difference. Okay. They'll let you do that. Because they already don't have fully collateralized loan, meaning that a truck is not worth what you owe.

So they already have $5,000 unsecured, right? And if you just now have a $5,000 unsecured and you drive the old car until you get your mess cleaned up here, uh, which make a 90, you'll be able to turn the corner pretty quick on this, but you've identified where the whole source pot is. And it's this truck.

It's killing you. Right. Right. What are the debts you guys have? Riley? Uh, that'll be, that'll be the last of the debt.

Oh, so eight grand on the car and you'll be done. Yeah. That's amazing. That's great. I mean, that eight grand on the car and you'll be done. Yeah. That's amazing. That's great. I mean, that feels good, right? Getting 31 off, 36 off. Knock that out and save up like crazy and either move up in the one-car family

or move into a two-car family again and then move up. Hopscotch, either one. I don't care which you do. But, yeah, I think you're probably moving back into the car business after you get the other one paid off and this gone and um you know uh yeah 4 000 sounds a lot better than 36 000 yeah yeah and it's great and then save up and you can get a used truck later yeah that's what i would do if i was in your shoes dump the truck and sign a note for the difference of the credit union and that like you said that Save up and you can get a used truck later. Yeah, that's what I would do if I was in your shoes.

Dump the truck and sign a note for the difference of the credit union. And like you said, that just pushes it on out there. Open phones at 888-825-5225. Our scripture of the day, John 15, 16. You did not choose me, but I chose you and appointed you so that you might go and bear fruit, fruit that will last, and so that whatever you ask in my name the Father will give you. Bill Murray said, whatever you do,

always give 100% unless you're donating blood. My gosh. That's funny. I have not heard funny that's good ross is in dallas texas hi ross welcome to the ramsey show hey dave thanks for taking my call sure what's up uh so i have just over 42 000 in student loan debt at a 5.625 interest rate and i'm wondering if i should take some of the contributions out of my roth ira i currently have about a 60 000 balance and put them towards the student loan debt no no no i never i never take money out of retirement to pay off debt unless it's to avoid bankruptcy or foreclosure because that money is going to grow tax-free that you've got in there to such a large amount that it would just be disturbing to me that you lost a million dollar tax-free account for doing

this and that's what it would be at your age how old are you i'm 32 yeah that's what i thought and so yeah so what's your household income uh a100,000. We'll be getting married next year, and that'll make it about $180,000. Oh, cool. And you only have $40,000 in debt? Yes, sir. Oh, so you'll be debt-free in a year. Yeah. Good.

No, I would not sacrifice my Roth IRA on the altar of a year. Okay. Yeah, I just was looking at the repayment calculator and i you know just trying to consider as an option because the monthly payments are i feel like you know really no no no no you misunderstand forty thousand dollars in less than a year i don't give a crap what your calculator said i want you to pay off your stinking loan now you make a hundred you're getting ready to make 180 i want that gone out of your income, lowered your lifestyle.

If you make $180,000 a year, you can't find $40,000 in 12 months. Now, that's after you're married, I understand. When's the marriage? Should be next July. Okay, good. Between now and then. I'd love for you a year from July? A year from next July, yes, sir.

Okay, all right. So you have a year at $100K to work on it. If you don't get it knocked out during that time, shortly after marriage, I want you to knock it out. But I'd love for you to knock it out out of your $100K. Or do you have the ability to work extra? I mean, anything else you can sell other than trashing your Roth? But yeah, that kind of stuff.

Let's just get in attack mode and say, I'm going to live on 60,000, which is just below average household income in America as a single guy for one year and knock this out. Yeah. I mean, after tax, you get 100. I know. After tax is 80, right? So you live on 40, put 40, that's two years. But then you're going to be married. So I mean, it's a process for sure. But also, I would say, Ross, too, go work extra. Up your income. Yeah, you're making $100,000, which is awesome. But it's just that, again, it's that singular focus of saying, what can I do to pay this off earlier? And run those numbers.

Those are numbers you could be running. If I made an extra $2,000 a month doing this or whatever it looks like um there yeah there's power in that yeah and it's kind of a thing what if you made it into a game and said okay as a matter of personal pride i'm going to walk into this marriage debt free now game on just kind of make it a game you know and so okay now what have i got to do yeah lots of work selling stuff not going out to eat and it turns into a game then um it's not life or death but if you treated it like it was you could make it and that's kind of my point and then for sure for sure when you're making 180 if there's any left if you guys don't knock that out real fast that's pretty lame

so now you don't need a payment calculator to figure that out 180 minus 40 or 100 plus overtime and extra jobs minus 40 that that's your calculator that's what you're dealing with and then uh minus lifestyle oh wait i don't have a life because i work all the time because I'm getting out of debt. Oh, that's okay, too. I like that one. That's a plan. That, you know, I would just make it a matter of pride. I think it would be kind of cool.

And pausing, too, Ross, your investing. No more contributions to that, Ross. So, wait. So, that could free up a couple thousand bucks, too, right, a year, depending on what you're putting in your Roth. So, that's good, too. Stop all investing temporarily while you attack your debt that's baby step two okay yeah for those of you that are new to this ramsey game dan is in atlanta hi dan how are you hey dave doing well how are you better

than i deserve what's up in your world sir hey I figured you'd say that. So I wanted to get your thoughts on something. I am buying a house, which is really exciting. Now I'm wanting to maximize my down payment. And really when I started the year, I wasn't going to be buying a house. So I bought a new truck that I paid cash for. And so my question to you is, should I liquidate the truck, take that down or take that cash and put that to the down payment of the house just to enhance going beyond that 20%? Or would you say, hey, just go in at what you're doing currently? What is the truck worth? $39,000.

And what's your household income? Over $100,000. Okay what's your household income? Over $100,000. Okay. And are you single? No, married. Okay. And what's her car worth? We actually lease her car for $200,000 a month.

Nothing down. Okay. Okay. okay um well no i would not worry about putting extra down on the house until we got her car paid off okay her car needs to be paid off you still have debt on it a car lease is not renting a house a car lease is an alternative form of financing. So that is a debt. You're in debt on her car.

And you need to clean that up before we talk about anything else. So if you sell your truck or if you don't sell your truck, her car debt needs to be going away very quickly. And if you need to sell your truck to do that, then that's something we can talk about. But you should be doing that before you start talking about buying a house and certainly before you start talking about putting extra down on a house we should be clearing her debt on that or the debt on her car and um so that's the route to go there yeah and we always say anything with wheels and motors not to be

more than 50 of your take-home pay and of your income of your household of your household income and you're at 40 grand so you're i mean you're getting up there i mean it was a nice truck for what you make right if you include her car if her car's value is over 10 grand then yeah your truck needs to go on that basis yeah you're right yeah you probably have too much truck and i think you kind of knew that and that's why you made the call so yeah let's sell the truck get you a decent truck out of the um out of the proceeds and pay off her car and whatever's left though that is extra down payment that's what I would do yeah but you know that's a good point Rachel I didn't didn't keep up with that and part of the math on this but yeah you can really get

into a pinch there but that's great though saving 20 percent Dan I mean for a down payment that's that's a that's a conversation that again people have been having a lot recently with the housing market. So we always applaud and congratulate. There's other stuff for you to do before you do that, but you guys have been saving really well. So that's great. Yeah, you're way ahead of the game on that. Rachel's right, so congrats on that. I'm glad you're getting it.

And you're right, you know, the way your brain's working is say, okay, what's more important, houses or cars? Well, financially, houses by far. Your personal residence is going to go up in value. Your stupid $40,000 truck's going to be worth $10,000 in about 20 minutes. They go down in value like a rock. That's where Chevy got that, like a rock. And so, oh, wait, I drive a Ford. No, wow, that's found on the road depreciated

f-o-r-d so there you go it's all goes down in value boys and girls it all goes down in value so yeah that's uh yeah where you're you know so your brain's telling you i'm gonna put money in something that's appreciating instead of depreciating it's like um i drove up in my 20s i had bought a jaguar. I thought I was a – Just such a fun – I know that you love Jaguars. I thought I was a BA. But like I never hear of Jaguar. It's not like a Mercedes or a BMW that I feel like is a –

That's why I bought it because I come from a neighborhood where we couldn't spell Jaguar. But I drove up and my grandpa was like, what's that? And I'm like, well, it's a Jaguar. And he goes, well, what did that cost? And it was like the 80s and it was 30 grand, you know. Holy crap. Yeah, it was expensive.

And he goes, that was dumb. And I'm like, why is that dumb? It's a nice car. And he said, it's going to go down in value. And I said, what's an investment? He said, my investments go up in value, son. There's a grandpa lesson right there. That puts us out of the Ramsey Show in the books.

We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. Thank you.