The Ramsey Show - App - Don't Just Assume You'll Always Have a Mortgage! (Hour 2)

Episode Date: December 30, 2020

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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'm Dave Ramsey, your host. My co-host this day on the Dave Ramsey Show is Ramsey personality number one best-selling author and nationally syndicated radio host, Ken Coleman. Welcome back, Ken. Always good to be with you, Dave.

I'm warmed up. Two hours of The Ken Coleman Show in the books. I'm stretched and ready to go. Okay. Let's go straight to Austin in Kuwait. Austin, how are you? I'm fantastic, Dave. It's great to finally talk to you.

How are you? You too, sir. Everything's great here, man. So what are you doing I'm fantastic, Dave. It's great to finally talk to you. How are you? You too, sir. Everything's great here, man. So what are you doing in Kuwait? Military? Yes, I'm active duty Marine Corps. I got two more years. Well, thank you for your service.

Yes, sir. How can we help today? Thank you, sir. Okay, so first I'd like to start off and say that I really appreciate you because I found your show about three years ago, and I'm 5K away from being completely out of the debt because of you. Cool. So my question, so I got two more years active duty, and I'm really interested in doing what you do. So my question is, what kind of degree or what kind of job should I shoot for once I get out to do similar things to what you do?

Radio or speak or coaching, what part of what I do? You know, like coaching people to get financially successful. Okay, cool. Well, it certainly does not require a certification or a degree. What you'd have to have is more knowledge than the person you're coaching. It's pretty much true. Absolutely. And so let's get ahead of that.

And so there's not a lot of curriculum out there for helping people that are struggling with money. There's a lot of curriculum for helping people that are wealthy and uh you know investment advice and uh you can go and get your cfp your certified financial planning designation uh we have a thing where we train coaches uh to you know to do it as a ministry to coach in there as a ministry in their church and help families or individuals that are struggling, or some of them go on and actually make that a career and are a part of our network that we refer people to. And so you can investigate that part of it. Ken, as far as steps after the military, what should he do?

Well, I think you have to first identify, like Dave said, which side you want to go to. You want to be more of a financial coach where that's an entrepreneurial venture. That's one client at a time. You've got to build it. And as Dave said, our financial coach master training program will not only teach you how to be a great coach, but will help you grow your business. So that's one option. The other option is do you want to get into, obviously, investing, so helping people like our SmartVestor Pros. Once you determine which of those two things you want to do,

is it a combination of both or is it just one of those things, that's what you have to get clear on. Then it's all about getting qualified. And so, as Dave said, one is going to require more qualifications in the form of some type of education. It doesn't mean a four-year school. But what does it take to actually get there? What's going to get you the ticket to the dance?

And so you're focusing on that now. As you're getting out of debt, you're also looking at what is the path that I want to take? And from that standpoint, once you get really clear on that, then you start to walk that out now so that as you get out of the military, now you're not trying to get caught up and get qualified. You're taking those steps as you can while still in the military. And I would tell you, Dave, the advice I give anybody like this is clarify and verify. So let's talk to some financial coaches. Get online. Find people who are doing it successfully.

Not the person, like you say, the shop teacher without any fingers. Don't want to talk to him about building anything. But the idea here is we want to talk to successful people who are winning and ask them, what do you love most about your day? Is there a part of your day you don't like? How'd you get there? How'd you build the business? Which way did you go? These things are super important. And as you're clarifying, it's like doing a college research paper on somebody, your heart will begin to verify if that's the work you actually want to do. And that's how you get real clarity. Yeah.

The way that I ended up starting this, Austin, is not necessarily the path you would want to take, but you might take a page out of that book. I started just coaching families at my church, and I had gone broke, and I had learned these principles from Scripture, and I was applying them in my own life and the pastor said hey can you help this guy who's in foreclosure I'm like yep I used to buy foreclosures then I was one so I can help him and so I sat down with them helped them get their home saved and you know negotiate with the mortgage company and it was all volunteer there was no money involved and there was no certification involved of any kind actually no training

involved I just stepped in and started doing it from my life experiences i was able to do that then that evolved from there to where someone started paying me to do that over time so you could while you're in this last two years work with the chaplaincy a lot of the chaplains teach financial peace university and ramsey plus now and you could work with a chaplain so you get a financial peace class going and just coach those guys and gals in the class. That's absolutely step one. And you could do the financial coach master training online, which it's online, so you can do the first steps of that.

That way you could kind of get your foot in the water while you're still a marine yeah you're trying it out i guess you're always a marine but while you're still active duty marine but um but the uh and you know then you could say well i don't think i really want to do this before you actually ran out of your contract with the military uh there's a lot of ways you could serve the the men and women right around you on a voluntary basis right now. It wouldn't be a paid gig, but again, you work with your chaplaincy there. I'm sure they're probably already teaching financial peace. We teach it to hundreds of thousands of military worldwide every year. So, hey, again, thank you for your service, and if we can help you, sir, anytime, you

let us know. Open phones at 888-825-5225. Will is in New Hampshire. Hey, Will, welcome you for your service, and if we can help you, sir, anytime, you let us know. Open phones at 888-825-5225. Will is in New Hampshire. Hey, Will, welcome to the Dave Ramsey Show. Thank you, Dave, for taking my call. How are you? Better than I deserve. What's up?

Hey, I'm on Baby Step 2, and I found you last year. I was like half a million dollars worth of debt, and I'm glad I found you before my daughter is going to college. I advised her that she was going into community college because we had no money. Well, her dreams went down when I said that to her. Basically, my question is, she's working two jobs right now through the summer, saving money for the community college that has already paid through scholarship for two years, but then she has to transfer to a university to finish what she wants to do.

She has about $5,000 saved working on it. And her and I had a fight the other day because out of her paycheck, I only let her keep 50 bucks. And she said it's not fair. I don't know, I only let her keep 50 bucks, and she said it's not fair. I don't know if I've been too strong on her out of her paycheck because she doesn't pay gas, she doesn't pay electric, she doesn't pay insurance for her car. I cover everything, so that way when she works, she gives me her paycheck, and I give her 50 bucks. And it all goes into her

savings for her education? Yes, sir. What happened is she doesn't have any dignity because she's not participated in the decision. I think what you're doing is correct. How you're doing it is wrong. And that means that you need to sell her the dream that you have for her. And when she adopts the dream that you

have for her, which is a good dream, you're doing it well, then she will voluntarily want to do that. Because if you want to go to school and you want to finish, this is how we're going to do it. I'm going to help you. This is the Dave Ramsey Show. As we continue to face challenging times, I hear that a lot of you have been calling Zander Insurance to see if term life insurance plans are still available. The good news is the insurance companies are starting to loosen up the restrictions

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the affordable coverage to give your family the peace of mind they deserve ken coleman ramsey personality is my co-host today here on the air. Open phones at 888-825-5225. Elise is in Buffalo, New York. Hi, Elise. How are you? Hey, Dave. Can y'all hear me?

Absolutely. What's up? Yeah. So I am a huge fan of both you and Ken. Love the Ramsey Network. Thank you. yeah so i um first of all huge fan of both you and ken love their mv network and i just wanted i guess you guys can help us with um like a minor disagreement my husband and i are having um so we're both 25 and we're on baby step two right now and we live in new york and we're just wondering, do we need to get a will right now, or should we wait a year and get one once we're done with Baby Step 2? Because we only have one asset, and it's our car, and both of our names are on it. So we're just wondering, do we need a will in our situation?

Yes, you need a will. Everyone needs a will that's an adult. Because otherwise you get tangled up trying to get his name off the car if he dies. And if you have a will that states that, it walks right through probate, and it doesn't take two years to sell the stinking car because they're getting the title straightened out. The will does that. The will gives the court clear instructions on that. And if you, let's say that you didn't have an asset, which is what you're talking about other than the car, but maybe his mother thought you did, and she decided she wanted to be one of the heirs, and there's no will.

Now you're in an argument with his mother about an asset that doesn't even exist, but she is under the illusion that it does. And this is all this kind of crap is cleared up when there's a will. Okay. No, that makes sense. Thank you. It's worth the, you know, you don't need an expensive, detailed estate plan, but it's worth going to MamaBearLegalForms.com, spending $100. And, you know, you guys have a very clear thing then.

And the other thing that is, if both of you die, what happens? Two years. Yeah, that's a good point. Yeah, two-year stuff. And so what you get, an inexpensive way to do a will, and especially in your situation, is what's called a mirror image will. It says this is what happens if he dies, this is what happens if she dies, and the exact same thing happens if we both die in both wills

and so it would sound like like you leave everything to him if you die he leaves everything to you if he dies and if we both die it all goes to mama or whoever whatever brother whatever it's going to okay and you just it's a very clear. It's just a cleanliness thing. And it's not probably going to change your life if somebody passes away, but it will lower the hassle factor by a thousand percent. And that's what you run into. And Ken, we've run into some really particularly egregious will situations. Hers is not lately um a lady called the other day and on the air here and after seven years of marriage her husband had not changed his will and had not changed the beneficiary on his life insurance and so her husband died and they've got

two kids and all the money went to his dad oh no the good news was his dad being grandpa says i'm going to give it all back to you but they're trying to figure out how to do that without the tax problems that that creates. Right. And so it's just one of these subjects that nobody wants to talk about and everybody has to talk about. Yeah. Sarah is with us. Sarah's in Oklahoma City. Hi, Sarah.

Welcome to the Dave Ramsey Show. Hi, Dave. Thank you so much for taking my call. Sure. What's up? I'm a little nervous, but I'll try to fix it. My husband and I, we own currently three rental properties as well as a home. And we have, we own about $25,000 of rental.

The other two are paid for, Sort of our house is paid for. We took out like a loan where we borrowed against our home to one of the rentals. Okay, your phone's breaking up. I'm going to put you on hold until Kelly can get you straightened out. Amders is with us in London in the U.K. Hi, Amders, how are you? Very good, thank you. I hope you are as well. are how can we know my question uh so my question is um like you i'm allergic to have handing over money to the

government and um in the uk we have something called an isa which works a bit like a roth in the us except it's not related to your pension so what i was thinking of doing was before i start throwing money at my mortgage to use up my £20,000 allowance that I can put into that every year, so that over the course of my life, I will use up more of that allowance and have less money to the government, and thereby have more money for myself. And I'd like your opinion on that. I'm confused as to how this works. pay 20 000 pounds to who so essentially it's uh essentially a tax wrapper so you uh put it into a specific account that has certain tax protections under the uk law which means that just like a roth it grows tax-free so you you use that if you paid into an account after your tax-free into an account after you've paid your tax on your income,

and then once it grows in there, whatever you have in there is tax-free for the rest of your life. Okay, wonderful. Okay, so it's very similar then. And so what that sounds like it would do is fall in what we call here in our baby steps, the baby step four, and that's put 15% of your income away into that. Anything above that I would throw at your home and get your home paid off before I maxed that out. So you have a maximum of 20,000 pounds, but there's 20,000 pounds more than 15% of your household income? Well, I'm already, no, but I'm already doing that in the other pension, which is the official

pension thing, which has other additional protections, which is a bit more like your 401k. So that has some protections in terms of if you go bankrupt and things like that. Then I would get the house paid off. If you've got control of that, the pension, and you're putting 15% on that, I would not do the first one you ask about until you get the house paid off. Okay. Even if that means paying more taxes over the course of my life?

Correct. But you're going to pay off your home fairly quickly. Okay. It's not the whole course of your life. I mean, how long is it going to take you to pay off the house if you lean into it? Well, I live in a one-bedroom flat in London that costs that costs 400 000 pounds so it will take a few years how long five ten uh ten if i throw everything at it i'd say yeah okay it's not really the course of your life then it's just 10 years and then you would load up the other stuff and so um you know the point being that we need to put what regardless

of the system we're using a substantial amount once we're debt free except for the home a substantial amount into retirement but not so much that we can't get the home paid off fairly quickly because if you can own that flat in london free and clear that's a nice asset, or at least in years past it has been. And we can tell by the cost of it that it has been, London being one of the more expensive cities in the world to live in. London, Tokyo, used to be Manhattan when it was there. But I mean, it's unusually expensive real estate on a worldwide scale. So that's what you're facing. But yeah, I see, it's unusually expensive real estate on a worldwide scale.

So that's what you're facing. But, yeah, I see what you're doing. And that's what I would stick with. And that's how I would push that. We get questions like this a lot, Dave. What's the psychology there? Because this is a very bright man here, and obviously he's doing really well. The psychology of, well, should I pay the flat off or I want to try to reduce my tax burden? And I understand it.

I hate taxes with a passion. I mean, deeply, deeply hate government control and taxes. But there's a psychological thing there where we kind of tend to focus on the thing that seems to be the irritant, not the better overall strategy. And he's not alone. What's going on there in our minds? Well, in the U.S., obviously, if you load up your 401k and with a traditional you're limiting you're lowering the tax bill uh in a roth you're not lowering your tax bill because it's after tax

dollars going in and grows tax-free which we'd recommend the roth anyway but back to your question you know i want to take the tax advantage and i want to be an investor more than i want my home paid off right and so what that means is with most people, not necessarily with amateurs, I don't know, but with most people, that means they've come to accept that a mortgage is always going to be there. Hmm. And so I might as well invest. But if you had this idea, I'm going to get rid of that thing. While I put some away, I'm going to get rid of it.

And then when it's gone, then I can go big. Right. And that's a different, it is different it is a it is a psychological thing it's a shift in the way you're viewing it's really well said we just assume well the mortgages

aren't going to be there so I'm going to focus on other strategies I really need to invest in that case that's good yeah Ken Coleman

Ramsey Personality my co-host today we're going to talk about careers and jobs he's here and we'll answer your questions

about your life in any area this is the Dave Ramsey Show. My co-host today, Ken Coleman, Ramsey personality, host of the Ken Coleman Show, number one best-selling author of the the book The Proximity Principle. We're talking life, careers, money, all those things today here on the air. On the debt-free stage right here in Ramsey Solutions, Tucker is with us. Hey, Tucker, how are you?

Hey, Dave. How's it going? Better than I deserve, man. Good to have you. Where do you live? I live in a small town, Cedar Bluffs, Nebraska. Okay. That's a bit of a haul to Nashville. 12 hours, sir. I was going to say, you really can't get there from here, except that way. Get in the truck and do it, huh? Yes, sir. All right. Good to have you. So how much debt have you paid off? Oh, $40,316. All right. How long did this take you? 11 months. Oh, you got it. And your range

of income during that time? 75 to 80K. What do you do for a living? I'm a railroader. Okay, cool. What kind of debt was the 40,000? I'll need a list for that, too. Cell phones, credit cards, I had a family loan, IRS. I love my toys, so I had a camper, a truck, a jet ski, and and a motorcycle you had a lot of stuff yeah yeah i was i was pretty i played dumb for quite a while did you pay it all off or did you sell some of it

uh i paid it i kind of did it funny i uh i paid it all off but then i sold i got so intense at the end that i wanted to get rid of the last one. The biggest one was the motorcycle. So I actually sold the jet ski to complete the motorcycle. Yeah. You know, because even though I wanted all my toys, I thought I'm just going to, originally when I started this, I just wanted to pay them all off so I could have all these toys. And once I started getting closer to the end of it, I got so intense that I was like, I just, I'll get rid of the jet ski, you know, to pay off the motorcycle. Very cool.

Good for you. So what did the jet ski sell you know, to pay off the motorcycle. Very cool. Good for you. So what did the jet ski sell for? $3,700. Okay. So $4,000 of the $40,000. That's the way it went, roughly. And then the rest of it you just cash flowed? Yes, sir.

And some home repairs in there with it. So, yeah, I did gutters and some roof repair and all that. It's been great. Wow. Well, good for you, man. Good for you. So what happened to you 11 months ago lit you up, man? Because you were buy everything, put it on credit, enjoy the moment.

And all of a sudden, you're a different guy. I was driving a truck through the Portland, Oregon area. And I was driving a big boom truck and came on the radio. I don't remember the radio station, uh you came on and i'd heard about you before but i hadn't really you know bought into it or whatever and boy there was a guy came on there he's like i'm 30 years old and i got this and i got that and these credit cards and i'm getting one up on them and you know i'm just whooping on discover and you came on there and you started putting licks on this boy like and i'm driving in the truck and i'm like man i like this guy yeah tell him tell him how it

is tell and then i go wait a minute that's me he's yelling at me right now and i said i want more of this guy i want more of this guy so i ended up buying you you were talking about your book so i ended up um picking up total money makeover read it in two to three days and um i just it was like lightning bolt just hit me boom i got a change wow and i got sick of putting out 18 two thousand dollars you know a month in payments and i just said you know what i'm done with it so i went through and signed up for fpu and wow it's just been i mean my whole life just turned upside down and you went for it here i am today you don't do stuff halfway no sir wow well. Wow. Well done, man. I'm proud of you.

Thank you. That's pretty stinking incredible. You, I mean, what we're describing here is not just a mathematical change. You changed. Oh, big, big time. Big time, yeah. A lot. It's, I've actually, I paid off that motorcycle, but I just sold that motorcycle also, and

I thought I was going to keep it forever. It was my dream bike, but my goals have changed so drastically that um it this didn't it started out as getting out of debt but now i'm looking at the future big time and i really really want to set my future up not only for myself but change my family tree so i just sold my motorcycle so i could catch up on kids college um ira and you know so everything's been changed for me it's been a total total makeover for me how's that feel it's unreal like i want to cry right now because it's just i do listening to you going from impressive man very impressive not being able to make you know being worried about not being able to make payments and getting furloughed and all that to now where

i don't have anything yeah and it's just like we came down here and i paid cash for the whole trip yeah and it's just been awesome you know it's just i can't i can't describe it the guy i'm looking at has coleman has a has a richness yeah of soul yeah a depth yeah yeah you gone from... You've gone from, you know, this deep to being really, to having some serious depth. You're an impressive guy. Thank you. Yeah. I want you to stay there for a moment and tell people who may be listening in for the

first time, just like you were. Yeah. You went from desperation to you're dreaming. Dave and I are looking at a guy who's got big dreams because you can see them now. You can get there. What would you say to people who are in that desperation moment right now? You can do it.

That's it. I mean, there's no, you know, you're going to have doubts. You're going to have, you know, these things that come in your life. People are going to tell you you can't. You're going to have these companies marketing to you. They're going to be trying to sell you every single thing

and you just say, no, I ain't doing it no more. I'm changing. And that's what I did. And now I can see a vision. I, I, I kept my life surrounded with Ramsey solutions. I watched Rachel. I watched a Chris, I watched Dave, I watched Ken. And I, I basically, you know, I got up in the morning with Google and she, my assistant would tell me, you know, every morning I get up like, good morning, Tucker. It's, you know, zero six. Uh, here's the latest episode of the Dave Ramsey show, you know, stop being 30 and spending all your money, dummy.

So, so like I completely changed my life and, and you can do it. Definitely. And you can all do it. It's just, you gotta have that deep down want, you gotta wanna, you know? I mean, you're, you're, it's a different guy that is going to keep a bike for life and then sells it because he wants to make sure his kid's college is funded. Yeah. He got bigger dreams.

That's so neat. That's so neat. So how many kids do you have? Just one. Okay. Who? Marley. She's four years old.

Oh, Marley came with you. She did. Awesome. Awesome. So is Marley going to do the debt-free scream with you? Yeah. Okay. Well, let's get her in the shot. How old is Marley again? She's four. She did. Awesome. Awesome. So is Marley going to do the debt-free scream with you? Yeah. Okay. Well, let's get her in the shot.

How old is Marley again? She's four. She's four years old. Well, I'll tell you what. She's got an impressive daddy. Look at that. Life is good. Life is good.

Well done. Very, very, very well done. Has she been practicing? We've practiced a little bit. Okay. She gets nervous, though. Oh, it's okay. It's okay. We're all rooting for her. Yeah, that well done. Has she been practicing? We've practiced a little bit. Okay. She gets nervous, though. Oh, it's okay. It's okay.

We're all rooting for her. Yeah, that's right. I don't even think we need to root for her. I think she's got it made. She's ready. She's got it made. Way to go, Tucker. You're an impressive young man.

I'm honored to meet you, sir. Very, very well done. We've got a copy of Chris Hogan's book for you, Everyday Millionaires. That's the next chapter in your story. You're heading that way. You've made the change. Guys like you and doing stuff like this, this is so impressive.

This is why I come down here every day. Thank you. It's an honor to be with you today. You guys have changed my life. You changed your life. We had the pleasure of walking with you. You're a hero. And you're definitely Marley's hero.

All right. Tucker and Cedar bluffs forty thousand dollars paid off in 11 months making 75 to make an 80 count it down let's hear a debt-free scream here we go three two one we're dead dead free that's so good i love it there you go man there you go so what's interesting is you got a young guy there working the railroad making 80 grand and he has a higher probability of becoming a millionaire and retiring with wealth and being able to live his life with his whole family tree changed than some dube with 16 degrees who can't keep from leasing cars and piling up crap in their house and going on vacations they can't afford

and continually buying things and spending money on things with money they don't have to impress people they don't even really like. This guy got it. God, that's so impressive. What a fantastic example Tucker is for all of us. That when we want to change, when we've said, I've had enough, we can make the change. We can endure the hardship. We can set a new course.

And we can reach that vision. It is in your control. I mean, Rachel was a baby when we hit bottom, when I made the same decisions he made. Man. This is the Dave Ramsey Show. Thank you. ken coleman ramsey personality is my co-host this hour. As we talk about your life and your money this day, the phone number is 888-825-5225. We're also taking calls about your careers. If you want to talk, Taylor is, I'm sorry, Andrea is with us in Denver. Hi, Andrea.

How are you? Hi, David. How are you and Ken? Good. How can we help? Well, first off, please don't yell at me. My husband and I, we got ourselves into a really big mess, and we're paying for it in a really big way. And the worst part about it is that we knew better.

We were on maybe step four or five, four, five and six. And we decided that we wanted to buy a house on some property that needed a lot of fixing up. So we bought it and we had about $35,000 in saving to work on the house while we were waiting for our old property to sell. So that was mistake number one. Got into it. Our house defied all the odds, I feel like, in the area that we're in. Really good neighborhood, really good house. We had some really weird things happen. And a day before we were supposed to close on this house, the deal fell through.

So now Colorado got really, really cold. We couldn't live there the way that it was. So we moved back into our old house and we're just at a crossroads because now we have two mortgages. The house that we were fixing up, we got it down to the studs and ran out of money because I didn't want to spend our emergency fund. And then we had a ton of emergencies that drained that down to about $3,000. And that's where we're sitting at right now. So we have a ton of friends and family that are speaking into our lives about what we should do, but we feel like we've lost our center, and we just wondered what would David Ramsey do in our situation.

Well, you've had a hard year. Yeah, it's been really rough. I'm sorry. But, you know, we put ourselves in that situation. Again, I felt like we knew better. No consolation. It still sucks. Okay, so your current residence that you're living in is worth what? The offer that we had was $345,000.

We put it on the market for about $350,000. And what do you owe on it? $177. Okay. All right. And the money pit, how much owed on it? We bought it for $350. We owe $280 on it.

Okay. And how much is the budget to finish the repairs? We believe that it would probably about be $50 or $60. Okay. Go ahead. And the issue is what? Well, the issue with that is we would have enough to do that with the sale of this house, but we also borrowed from his grandmother to do the down payment on the farm, which is $70,000.

Okay. So after we pay her and we sell this house, if we were to continue to go that route, we would have enough to finish the house. Okay. to go that route, we would have enough to finish the house. Okay. And what is that house worth after you spend $50,000 on it? My real estate agent and we've had a few other people, contractors, and that speak into it, and the location is amazing.

It's on 13 acres. What is that house worth when you spend $50,000 on it? We think it would be worth between $450,000 and $500,000. Okay. So you get to do what you want to do, which is what you've done so far. You ask what I would do. I would sell your home. I would move into a rental, I would complete the renovation, and then I would sell that piece of crap. And then I would pay your grandmother back and go buy you another house. Okay.

This house is not a dream. The second one, it's a nightmare. Parts of why you sold yourself on it and led yourself down this path where you got the crap beat out of you are still in your brain. It's a great location. I don't care if it's a great location. The house sucks. The whole story sucks. And as long as you live in that house 20 years from now,

all you're going to remember is this horrible story. You're never going to enjoy that house. Fix it and sell it with the money you get from your house while you're renting and then go buy something else and get Grandma paid off. And then you get to have a never-again moment. And you know what the never-again moment is, don't you? Do you? Never again am I doing stupid crap like this right yes that's what i had when i went bankrupt i had a never again moment never again am i borrowing up to my eyeballs

because i was doing what you're what you're did but i'm but i did it was zeros on the end because i was stupid and i had a phd in dumb so you're just a little bit you're just tiny dumb compared to how dumb i was but yeah i gotta learn your lesson and you gotta cut the emotional garbage loose from this thing because there's no way i'm living in that house not after it's destroyed your family i mean this thing has owned you emotionally for 24 12 months however long ever since you owned it it's owned you the flip side to this andre if you hear what Dave's saying, is there is a way out of this. Yeah, you're out. And you feel as though the way you're reacting, I understand you're discouraged,

but Dave just gave you a very clear way to get out of this, and it'll work. And I agree with you, Dave, but here's what they've got to focus on, a new desired future. It's no longer that place. It's, wait a second, there's other great spots out in their area in Denver, Colorado. Are you kidding me? We also figured out, she also has figured out, I'm not a rehabber. That's right. I don't need to do rehabs.

And they were already in four, five, and six. You need to buy a house that you move into. That's right. And not even a closet needs painting. No more renovations for you they can erase this and start on a new canvas it's going to hurt yeah that's right they're actually probably going to end up netting a profit when all the smoke clears the way i saw the numbers yes they come out of this really relatively financially unscathed you know other than just the emotional

embarrassed and ashamed that's right but that's, you know, and some scars from that. There's more. Let me just beg you, having done what I do for 30 years and having owned real estate, I've owned thousands of pieces of real estate, over 2000 pieces of my life. Do not fix this house and move in it. You will hate it. It will never feel right because of what it has done to you. And it will always be this reminder of the dumb thing that I did. It's true.

Every time you walk through that hallway, every time you, you know, just don't do it. It's a please. You do whatever you want to do. But, I mean, I try to get rid of things that remind me of my stupidity. And I want things around that remind me of the time I was smart. It's true. Because there's plenty of both. That's right.

And they don't have to live this the rest of their life. They can go, all right, we did this. Thankfully, we got out of it. And now let's go find another thing. Let's rebuild and let's find another great vision and let's go after that. And that's the key. They've got to sever the emotional tie to the steel. Yeah, and here's the thing.

It's a house. There's houses everywhere. That's right. There is no unicorn property. There's just not. I mean, there's not a property that says, there's never been one like it, never been. I mean, there's about 10 properties in every city that might qualify for that.

Other than that, most of it you can probably replicate. I mean, it's just a house on every corner. You can figure this out. So I would cut all of it loose, start fresh, call it an adventure, call it a day. The good news is you're not losing a half million dollars and having to start over on your wealth building. You're actually probably going to come out with a net, net, net profit after grandma, after after the renovations after the recoup of the 35 you spent out of your savings and the sale of both properties all of it back in a pile i think if i if i heard the numbers right you're going to come out okay so it's just an emotional process

and no this hour kind of had a theme of like forgive yourself that's exactly what i was going to yell at her you know who's yelling at her her Her. I'm not. I didn't yell at you. Yeah. You know, you've been yelling at yourself a lot louder than I have. But don't try to halfway go through this. You'll be a mistake. Clean slate. Rip the Band-Aid off.

Get a fresh start. Thanks to James Childs, our producer, Kelly Daniel, our associate producer and phone screener. I am Dave Ramsey, your host. We'll be right back. Have a friend or family member that needs a daily dose of Ramsey advice in their life? Let them know about the Ramsey Call of the Day podcast. It's a quick hit of advice about life and money in under 10 minutes. Check out the Ramsey Call of the Day podcast wherever you listen to podcasts.