The Ramsey Show - App - Don't Let Pride Get in the Way of Your Progress (Hour 2)

Episode Date: October 29, 2020

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Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studio, this is the Dave Ramsey Show, where America hangs out to have a conversation about your life and your money. I'm Chris Hogan, and hosting along with me this hour is Dr. John Deloney, and we are very excited to be able to spend this time with you. But here's the deal. We need you to pick up the phone. Give us a call. 888-825-5225.

Again, that's 888-825-5225. Or you can feel free to look us up on social media at Ramsey's Show. Or you can find John at John Deloney. Or find me at ChrisHogan360. Either way, we want to hear from you all right John are you ready for a show let's do it uh what what do you got going on these days I got a new book coming out Chris it's called redefining anxiety okay and we are talking to folks who have been lied to for years that when you are struggling when you are stressed and you feel anxious it's because something's wrong with you. That you're broken.

And it has nothing to do with the choices you're making. It has nothing to do with the environment that you found yourself in or that you've created for yourself. It's a quick read, Chris. It's 80 pages. It is action-packed. It is quick. You can finish it in an evening and you can sit down and talk to your friends and family about some changes

you can make in your life right now and over the long term. It's going to push us. It's going to be uncomfortable. To get some changes you can make in your life right now and over the long term. Oh, so it's going to push us. It's going to be uncomfortable. To get some stuff done in a good way. That's right. Well, I can't wait. I'm excited for it.

You know, in this day and age right now, with all we've dealt with, with COVID and all the unrest and frustration and irritation around the upcoming election, all the things. The bottom line is at some point we've got to begin to gain some clarity and know what it is we're doing and, more importantly, why it matters. That's right. We really do. And so I think I'm looking forward to it. I can't wait. The release date on that book is when? I think it's November 6th or November 7th.

It's coming up here quick for the SMART conference. There will be information on John's website. Go to johndeloney.com. You'll be able to check it out and know what's going on. And you did. You just alluded to Smart Conference. This is an event that's coming up. We're actually having it next week.

And right now, there is a limited number of opportunities, 50 seats left, for people that want to come and be here live to be able to see the event, plus have an opportunity to do a VIP reception with Dave and all the Ramsey personalities here at Ramsey headquarters. We're going to have heavy hors d'oeuvres. We'll have a bar. There are meeting greets, photo ops. We're going to have all kinds of fun. But what you need to do is go to DaveRamsey.com slash events to be able to get your ticket. Again, that's DaveRamsey.com slash events. be able to get your ticket. Again, that's DaveRamsey.com slash events. All right, we're excited to get to the phones.

Again, call us. We'd love to be able to hear from you. Let's get to the phones. We've got Alyssa on the line. How are you? Hi, I'm doing well. How are you guys? Oh, we're focused and not finished, young lady.

What's on your mind? Awesome. So thank you so much for having me on the show um i've been reading your book everyday millionaire yes ma'am um i took fpu last year and it's just like so been so helpful and so appreciative to dave ramsey and all of you guys on the ramsey solutions team um so i'm 23 i graduated with my ba um a bachelor's degree in um january so i did it debt free i didn't take out one student loan great yeah grateful oh my gosh i'm so happy to be like at this spot where i can start working on the other things and learning this so young and so

i'm so grateful hey alissa hold on a second alissa who taught you to avoid the student loan debt? So I, you know, my mom like really, honestly, I just have been very frugal all my life. Yeah. And I kind of ended up going to a community college. Okay. And I was saving up to go to it. I don't know. It just kind of happened.

Hey, Chris, can I tell you something? My mom. Hey, Alyssa. Yeah, go for it. Here's one of my favorite things that just happened. I got a comment on this. You just asked Alyssa, who taught you this? And as she was running through her head how to respond, you could hear it, which is, it's just stupid to do it the other way right and Alyssa you don't have to apologize for having something that most don't which is just common sense and actually a drive to take care

of yourself in both the short term and the long term so you don't you don't have if you don't have somebody off top of your head you don't even have to come up with it you can just say it's just I'm not an idiot and that's's a great answer, Alyssa. Good for you. Just common sense. Good for you. Yeah, thanks, guys. So anyways, I've been on, I didn't have to do Baby Step 2. I did Baby Step 1 at FPU.

I've been on Baby Step 3. I got three months saved, and then I started tackling, trying to get to, well, I had moved into a new place, so it raised. And so I started getting to six months and then I finally got to six months living expenses saved. I've been saving for retirement since I was like 18. However, I didn't know until FPU that compound interest is a thing. So I only have like 5,000. It's not much, but that's my main question is retirement saving. I just finished the third baby step

when I got disabled. So I was saving 10% retirement. It's not going into anything right now that's building interest and that's what I want to change. I just finished and I got disabled. So I have been not using my emergency fund. I've just been living on very little because I'm like, I just finished that emergency fund. I'm not touching it. So it's been two months and I feel like I've been doing okay on like the 50% income or whatever that the state's giving me. And I'm like doing jobs here and there, like small little things. Anyways, I'm just trying to figure out, like I've been trying to like talk to smart investors.

I've been reading your book, Everyday Millionaires. And now I'm going've been trying to like talk to smart investors I've been reading your book every day millionaires I've been and now I'm going to start reading retire inspired like I just I'm stuck I feel stuck and I don't like I talk to investment people or smart investors and I just don't know like to be honest I don't know who who to trust okay so so it's one of those things people say start Alyssa it sounds like it's one of those things. Alyssa, it sounds like it's not necessarily that you're stuck. It sounds like you're fearful. You know, you are reading and you know the importance of investing because it's to grow money.

Because inflation is going to hover between 1% and 2%. So the cost of living is going up. So our dollar is shrinking if we're not investing it. And so, you know, right now, income-wise, I'm sorry to hear about you being disabled. Is there a prognosis of when you're going to be able to get back to work? Yeah, so I'll be back by December 31st. Basically, January 1st, I'll be back and ready to go. Okay. Unless I get a remote job. Yeah. And so you've been having these...

Unless I get a remote job. Yeah, well, you've been having... Like, when to do. Yes, ma'am. You've been having some conversations with investment people, but I think what it is is now understanding that, hey, I need this money to grow. And it's, I also don't understand. Like, I don't understand investing, and that's what's just stifling for me, is sometimes

they talk and I don't really know what they're talking about. And you say not to do something that you don't understand. No, you're absolutely right. And I appreciate that you're bringing this up because a lot of people have this fear. A lot of people have this concern. They're like, I don't really understand it. And unfortunately, if they don't ask or they don't raise their hand, they don't give themselves an opportunity to be able to see. Now, here's what I might do if I'm in your shoes. You said you've reached out to a smart investor pro. I would reach out again. I'd make a list of your questions and go, you know what? I've got a lot of questions and I'm going to require some time. Are you willing to sit down and talk to me? Are you going to be a teacher? And somebody with the heart of a teacher, not a

salesperson. And just be upfront and honest. But, Alyssa, we've got to grow this money. You're reading my books. You know the value of it. And you, young lady, have some drive. We've just got to get over the hump and have good conversations so you can learn, so you can grow. Go to my website, ChrisHogan360.com. I've got a free investing guide that will help you.

This is The Dave Ramsey Show. Folks, I love telling you about well-made, well-thought-out products. Today, I'm talking about Grip6 belts. I don't know about you, but I'm not a fan of traditional belts. They never fit right, and they're uncomfortable. Grip 6 belts are unique. Owner BJ designed a truly modern, minimalist belt made of high-quality materials with no holes, no flap, and no bulk. And the buckles come in really cool designs and are interchangeable. I personally own these belts in different styles, and talk about affordability, GRIP6 belts come with a lifetime guarantee.

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and we have been taking your calls. Thank you so much for opening up, reaching out to talk to us. That number to call is 888-825-5225. Again, 888-825-5225. Kelly is standing by, ready to take your call and to talk to you about the questions you have on your mind. All right, John, it's time for TheBlinds.com. Find out for yourself why Blinds.com is the number one online retailer of custom window covering. You get free samples, free shipping, and with the new promos they run every month, you'll save even more.

Use promo code RAMSEY to get the best deal. Rules and restrictions apply. All right, today's question comes from David in Maryland. David asks, I've heard you discuss drawing retirement funds at a rate less than the money is earning. Can you discuss the practical logistics of drawing retirement funds? Should funds be taken from retirement early, monthly, annually? Do you recommend calculating a historical average and sticking with that percentage draw, or should one just adjust the percentage draw during down years? Thank you. Ah, David. Okay. That's a lot of questions. It is a lot. But essentially, he's talking about asset deaccumulation, right? Accumulation is where you're building up the

401ks and building up the IRAs, and you're very intentional with putting that money away. The deaccumulation is where you begin to pull funds from that. Now, there's been historical debates on people talking about you should only pull out between four or some people say eight percent. Again, as you begin to look at it, the key thing is if you've worked the baby steps, you've put yourself in a position that you don't have a whole lot of must-tos with money. The best case scenario is you got to baby step number seven and you've paid off the house. So now you've got basic living expenses and some travel stuff to pay for. But typically, I tend to talk and use as an example the 4% rule of exactly

what you're drawing off from your assets. Again, depends on how much people have. You've got 56% of Americans have $10,000 or less saved for retirement. So that's a problem. So asset deaccumulation is essentially what you're wanting to talk about with your investment professional. You can set it up to where you're drawing off monthly. You can set it up to where you're wanting to talk about with your investment professional, you can set it up to where you're drawing off monthly. You can set it up to where you're doing it annually. It's all a matter of what works for you. If you're somebody that's not a saver and you tend to spend if money is around, then you definitely want to set it up to where it's coming off monthly.

It'll protect you from you. But the mindset around it is we still need the money to grow. So this relationship with your investment professional is a vital ongoing relationship. This is not a one and done or two and done. This is ongoing in the conversations. Do you change how much you're pulling off in down years? Yeah, it's important to make that adjustment because you're not having the rate of growth. So this, again, you got to keep your hand on the pulse, just like a doctor would in a doctor's office, to be able to find out what's going on.

That's how you want to look at your investments as well. Thank you so much, David, for that question. Again, you can go to DaveRamsey.com to get connected with the SmartVestor Pro and begin to walk through these things. These are great questions to ask, and it's good for us to all be on the same page. So here's me being vulnerable again chris and i hadn't i've never thought about this since this moment um i've got this destination of retirement and this destination of retirement dollar amount yeah it never occurred to me how i

was actually going to get my hands on it and it was going to come in pieces and would it fluctuate and things like that which it absolutely will right and i can't believe i've never had these thoughts but um i'm gonna need to watch that money and that monthly income or that annual draw the same way as i check my paycheck when it gets deposited just to make sure old d rams didn't short me a little bit right but i mean i look every month right right just to make sure i'm gonna have to be on top of that and's going to be years that if the market goes down, then I'm going to have to keep up with my wife, adjust my lifestyle. I'm going to adjust the money. And I'm going to have to have some conversations with her and myself

about do we want this on a big lump sum? Do we want it bi-annually? Do we want it every month like a paycheck? Well, and the reality of it is, too, John, you're absolutely right. That ongoing conversation is imperative. And if you're married, you want to have that conversation with your spouse. Because everybody needs to be on the same page of where this money is, but also what's going on. So, you know, I advise people, as you're having this conversation again, before you go into retirement, I talk about it in my book, Retire Inspired, the game plan you need to have two to three years out from retirement.

And so it's one of those where, yeah, you're going to continue to look at that statement, continue to make some adjustments in lifestyle, and just be aware. And so it's an ongoing thing. And I wish I could get people to wake up and see, more people to see, that your 401k isn't money that's just taking money from you. Your 401k becomes the bucket that you're going to pay yourself with later. That's right. So the money you put away now, it's important that we're putting money in there because now with compound growth, it's going to grow. And later it'll be able to provide you a stream of income each month. So we had a caller earlier, 23 year old,

who's just trying to figure out investing. It just seems like a lot, right? I want to talk to you, the 40 year olds to the 50 to the 60 year olds out there. There are things that you won't know. I've almost spent the one calendar year working next to Dave, about eight inches from Dave. And it never occurred to me, how's that money going to get out of the bucket and actually get into my house till just now, Chris. And and so to everyone listening if you don't know logistical questions i'm fortunate i sit next to chris hogan in the office i sit next to chris right here i can ask him find somebody find a smart investor pro that you can ask those questions humble yourself be vulnerable if you think you should should already know that by now look at your wife look at your husband say i don't know the logistic questions let's go figure it out don't ignore it don't ignore No, that's a great point.

And I'm going to tell you, this is a two-way street of knowledge. John, you and I have had some conversations about some of the things I've been wrestling with and walking through. And learning that life's not meant to be done alone. Making sure you're tapping into your feelings, seeing them for what they are. But then allowing yourself to be able to grow. And so it's crazy. Everybody's got stuff they don't know. Everybody's got stuff you don't know.

And so what I want to encourage you to do is let's make this year the year that we put pride to the side and we begin to honestly reach out and ask for some guidance. I'm going to steal that and make it a sticker. Put pride to the side. Don't take my stuff. You are a sticker guy. I am. I'm a quotable. You're a quotable. You better quote me. But no, seriously, don't let my stuff. You are a sticker guy. I am. I'm a quotable.

You're a quotable. You better quote me. But no, seriously, don't let pride get in the way of your progress. And I've said that on my show. And I said it because I've lived this. As have I. As have I. You know, setting down your pride going, I'm hurting here.

Or this is not going well. Or I need some people in my life that have some wisdom I don't have. Or have clarity of mind that I don't have right now. And having those people around you can really guide you. We've all heard it and thought, you know, they can hold you up when you don't have the strength. They can also help guide you and help talk through some stuff. But it's amazing what our pride can do. You're not dumb if you don't know.

I'm going to say you're dumb if you know that you don't know. And then you just keep your mouth shut. That's when you're making the mistake. Where you're failing to ask for help. That's right. You know, and so, again, I just think this year, this is a year of refocusing and all the things. Let's begin to have this mindset of, hey, I'm going to reach out. I'm going to ask some people to help me when I know I'm not able to help myself right now.

All right, listen, I'm going able to help myself right now? All right, listen. I'm going to look at this question here. Someone said, asking me, Chris from Facebook says, I'm 14 years old. I mow lawns trying to save for a car. Should I set my price about the same or a little over the competition? Wow, I love this. This young man is focused on making business happen. Here's what I'd do.

You're trying to save for a car. You're 14 years old. You're a few years out. I would find out what the competition is charging, right? And what are they doing? Are they just cutting the grass? Where you've got an opportunity to maybe come in a little bit above, but you're going to trim. You're going to do some other stuff.

So I would have packages, Chris. You're a young entrepreneur. You're going to do some other stuff. So I would have packages, Chris. You're a young entrepreneur. You've got your baseline mowing package. You got your mowing and your trimming service. And then we got maybe the mowing, trimming, and raking opportunity to be able to help people with their lawns. And you could price it accordingly, thereby giving people options and choices to make. Hey, Chris facebook when i was 14 i undercut the neighborhood baby oh you tried to 25 i got you for 20 and all i had was my mower that's right man we got it done i just it comes back to quality of work yeah do excellent work and they will keep you coming they will keep you employed my man good for you i want you to keep us posted i want to know

how much you're planning to have by your time. You're 16, and I want to know what kind of car you're going to get, buddy, because that work ethic that you have is not an accident. You will have enough money to get that car. This is the Dave Ramsey Show. Thank you. Welcome back to The Dave Ramsey Show. I'm Chris Hogan, and hosting along with me this hour is Dr. John Deloney. We are very excited to take your call and talk to you about what's on your mind. Just pick up the phone and dial

888-825-5225. Again, that's 888-825-5225. We'd love to talk to you. Alright, we're going to get back to the phones. We've got Antoine on the line. How are you, sir? I'm doing well. Thank you for taking my call, Chris and John.

Yes, yeah, we're excited to talk to you, buddy. What's on your mind today? So I have around $6,000 in U.S. savings bonds. And I've already seen your advice about, like, it's a bad investment and you'd be better off, like, putting it into a mutual fund and get a higher rate of returns but given that i'm in baby step three i'm wondering if it would be better to use that money to uh fund up to my six months uh expenses or should i just take that proceeds

and putting put it in a retirement account? Great question. Where did they come from? Antoine? Uh, they came from my father. Um, he had a, um, he had a ritual where basically every Christmas, uh, he would get me a $500, uh, savings bond. So I have some between 1994 and like 2007. Ha. Is your father still with you? Unfortunately not. Yeah. Well, here's the reason I ask is oftentimes

as we're talking about this, you and I both know that if you were walking down the street and you found $6,000, what would you do with that money? Well, now that I'm on the banking step, I would follow the bank. That's exactly, you sure would. And so that's how I, me, Chris, practically look at those savings bonds. However, for you, you've got some emotional connection to them.

They're from your dad. And you knew him, you know he loved you and you loved him. And so you've got an emotional connection. And so I'm going to look at these in that way and say, absolutely, I want you to keep stepping, baby. You know, keep following the baby steps, walking that path. Definitely connecting with a SmartVestor Pro to figure out, all right, what's the worth right now? What's kind of the strike price based on when they bought and when they mature and all of those things?

But, I mean, Antoine, again, I'm going to look at that, and I'm going to try to find a way that I can take every dime and put it into the step that you're on, then you're on baby step number three. So any extra money coming in, that's my mindset. Okay, thank you. Yes, sir. I appreciate your time.

Hey, Antoine for i'm curious how much debt did you pay off uh so i paid off uh ten thousand okay how long did it take it took me a little bit over a year it wasn't so i didn't start the Baby Step program until a year ago. Okay. So I had a few thousand I paid off before then, but between that, in that year time, I basically paid off 7,000. Okay. That's good. You know, that mindset of sacrifice is important. And for those of you that are new out there, you hear us talking about the Baby Steps.

What are they? They are the roadmap. That's the process by which it's going to get you from where you are to exactly where it is you want to be within as far as your financial situation. And so it is a plan. It's going to walk you through the process of helping you get focused, helping you understand, Hey, what do I need to do? Because people say I'm sick and tired of being sick and tired. I'm sick and tired of being afraid. I'm sick and tired of not having enough money. And so you begin to say, what can I do? Well, I can tell you what you can do.

You get plugged into Ramsey Plus, where you're going to have an opportunity to get our life-changing curriculum in Financial Peace University. You're going to have an opportunity to be able to plug in and use more tools than you can imagine with the Baby Steps Tracker, the EveryDollar app. But you're also going to have the community. use more tools than you can imagine with the Baby Steps Tracker, the EveryDollar app, but you're also going to have the community. And that means being connected with people, like-minded people that are driving toward a goal. And the beauty of it is you also get access to a financial coach. So it's like a personal trainer, only for your money.

And you get a chance to ask those questions. So get over to Ramsey Plus. You can go to DaveRamsey.com uh and find out more it's a free trial people okay quit binge watching all them things on on the netflix and the amazon and all the other stuff let's get plugged into information that can help us change our lives i heard they're doing a where are they now with tiger king you and i don't need in my head any more tiger king my man no i'm good i good. I never watched it. I'm still recovering. I didn't watch.

Your head is better than mine. Yeah. No. Not doing that. I got things to do. There you go. I'm not going to do it. Feed your mind stuff that's going to help it grow. That's right. I mean, I watched some other stuff that maybe didn't help it grow. I didn't, you know, I mean, it's okay to be entertained,

but what I'm saying is, is read some books. Let's get some information that's flowing that we can help ourselves and be able to help other people. And you've got a great opportunity to be able to do that. All right. Listen, if you are out there and you want to say, boy, I want to try to save some money on my insurance. Like I'm truly, you've seen these commercials with little lizards and toads and emus and all this stuff out there listen the bottom line is yeah i know it's real is that the first time you ever said that word in your life chris no i've used it a few other times uh like and gnu and gnu you know what a gnu is nope yeah gary gnu uh anyway i digress listen if you're out and you want to drive for less, bottom line is you've got an opportunity to be able to save on your insurance by helping you pay a lower premium.

Some car insurance companies have already started giving credits for about 15% of your premium. Now, obviously, if you're confident that you've got the lowest coverage, that's fine. But if you're not, don't settle for a skimpy $70 savings. You might be able to save a whole lot more by shopping around fees. So again, if you want to see if you can save more, connect with an endorsed local provider or an ELP. These are the people that we trust to help you. And it's something you can do from your couch. And it's free to have the agent be able to shop around rates for you. So most people, hear me with this, talk about savings, most people who work with an ELP save around $700, and after the coronavirus, you and I both know that every penny counts.

So never again should you put your insurance on autopilot and overpay. You'll have to have someone to shop for you right now which is going to save you time and save you money so text the word auto a-u-t-o to three three seven eight nine to get started again text the word auto to three three seven eight nine and you can have an opportunity to be able to make some real savings seven hundred dollars is nothing to sneeze at john i would love to sell me some save me $700. But hold on. The lizard says that if you buy a product that is designed to protect you and your family, and the main spokesperson is a cartoon animal, think about yourself. Yeah, I know.

Think about yourself. You know what? You're right. That little lizard does not give me the sign of protection. I laugh every time. Right. I high five. I love a great commercial. I used to eat Burger King after that big face commercial because it'd make me laugh out loud. And I'd say, in honor of the people you hired to do your marketing, I'm going to support your product. I'm going to die younger, but I'm going to support your product.

And so I love me a good commercial. But, man, make the phone call to talk to a live person who's going to save you $700. Yeah, it's important. It really is. And we can all chuckle. You know, I've laughed at some of these commercials that I know were just ridiculous and absurd. The emu commercial, man. That guy cracks me up, man.

Is that really what that is? It's an ostrich, an emu. It's not an ostrich, man. There's a difference between the two. We'll Google it at the break, I guess. But here's the deal. If you're out there, we want to talk to you. We know you've got questions.

We're walking through with answers. And I just want to let you know that at the Ramsey Network, we actually have all of us Ramsey personalities have shows. John has the Dr. John Deloney Show. Episodes every Monday, Wednesday, and Friday. It's on YouTube and anywhere that you listen to podcasts, Apple, Google Play, all the things. When does your show come out? My show is on, the Chris Hogan show is on the YouTube, Apple Podcasts, Google, and SiriusXM. So if they get over on the YouTube, they can look at it. Look, see, they got the clips.

And for some reason, I don't know how my team catches me making these faces. I guess I'm expressive from time to time. But it is quite comical. But you can check us out. Like, get plugged in on these shows. John, I've listened in on your show, and you've had some doozies, buddy. People walking through some real relationship situations. But you walk them through with clarity. and you're giving them action steps to

take. And I tell you this, buddy, I congratulate you because what you hear on the line with you is care and concern. Um, and it's one of those things where I hear people getting a verbal hug, walking through with you and being able to know that,

Hey, where I am right now doesn't have to be where I end up unless I stop. This is the Dave Ramsey Show. Boy, they just had up a graphic about the Smart Conference that's going to be going on next week. You've got a great opportunity to get plugged in and to be able to come here and be a part of the live stream studio audience, all you have to do is register by going to DaveRamsey.com slash events. There are going to be a lot of VIP things going on. You're going to get a chance to meet Dave, all the personalities, take some photos, and see the Smart Conference live. So go to DaveRamsey.com slash events.

All right, we're getting back to the phones because that's what we do. But if you're out there and you've got a question, listen, especially on the topic of money or relationships, especially relationships. This is a tough time of year where people are digging in and they're going, listen, I've got this situation with my brother. Or I've got this situation. Or maybe you're stressed out about the holidays and you go, we're not going this year. And we haven't told the outlaws. I mean, the in-laws. Or we're sitting put. Whatever it is, if you got that question, pick up the phone.

Deloney's in here. And I need to put him to work. Okay? I really do. I need him to get to work giving out some advice. So the number to call is 888-825-5225. Again, that's 888-825-5225. He will help you.

All right, we're getting back to the phones. We got Jamie is on the line. Jamie, how can I help you? Hi, guys. Sorry, I think this is a question for you, Chris. Yes, ma'am. Oh, don't apologize. Chris needs the work, too.

He's good. Okay. So my husband and I reached baby step seven earlier this year when we paid off our house. Great. And our retirement accounts totaled just under $300,000 at this point. Okay. I did an RIQ on your website, Chris, and it says that we only need to save about $72,000 more to hit our RIQ of about $2 million in 18 years. And so our next goal is to build a house on some land, but I'm estimating we'll need to save at least another couple hundred thousand dollars to make that

happen debt-free. And so my question is, can we pull back the reins on our retirement contributions? Your website does say we need to save about $108 a month to reach our RIQ. So we would contribute that each month, but then everything over that can we throw towards building the house? And then a second question to that would be if we do save up money and want to do it quickly as possible, is stockpiling cash the best way to go or should we be putting this money in non-retirement mutual funds? Good, good question. Jamie, tell me this, as you are just estimating,

how much are you going to need for the land and building of this dream house? You know, living in Colorado, probably, we want a modest house, but I would say $600,000 to $700,000. Okay. And how much is the home you have now? It is worth about $420,000. Okay, and why are you looking to move? Is the house too small? What's the deal? We've always wanted to build on our own land,

and we also own a business where we really could use a workshop, and so we want to have a space where we can put a workshop there as well. Uh-oh, my wallet just twitched. You just told me $6,000 to $7,000. That's to build a house on the can put a workshop there as well. Uh-oh, but my wallet just twitched. You just told me $600 to $700. That's to build a house and the land. So how much is the workshop? That would be with it. My husband, we've got people.

Okay. All right. So you're looking at this. So how much land are you thinking about? You know, Chris, I don't know. It's very, very early estimations at this point. So, you know. And you said you're self-employed?

Yes. Okay. What line of work are you in? We provide data collection to engineering firms. Okay. So how's business been throughout this COVID situation for you? We've had our best year yet this year. Yeah.

And so household income is how much? This year we're expected about $180,000. Okay. And what's your ages? I'm 32 and my husband's 38. That's fantastic. Good for you. You guys are rocking.

And listening to this, I don't know. I'm going to tell you, A, to go sit down with the SmartVestor Pro so you can run the numbers and really dig in and see it. Initially hearing that you want to stop retirement. The other side of it, I go, why stop? Like, you've got an opportunity to earn the extra dollar amount you guys are looking for. You're self-employed. So you've got a $200,000 to $300,000 gap between your value of your home and this dream home. So here's my thing, to be honest with you, Jamie.

I've never had anybody call me and say, Hogan, I've got too much money. Hogan, I've got millions now or a million plus. I don't need it. Don't want it. So I've never had that. So my mindset would be, what do you do? How do you stay focused on this and continue to invest? But what are you doing? If you're completely debt-free and now you're investing 15% and you're making $180,000, where's the rest of the money going?

You guys could easily save up the $200,000 in a matter of just a couple of years. And so imagine this. If you tune up your business to ramp it up a little bit, and you begin to try to have those projections aim a little bit higher, and you tone down what you're spending and tune up the savings, you're able to do this with cash and not having to steal anything from the future. So you've got options. As you said, your husband it's early 39 and 32 years old i'm impressed with you but i would say keep investing find a way to cash flow this thing and earn you right to that dream home

what do you say chris we don't touch the retirement we sell our house for 420 000 bucks we take that money and then we take out a mortgage for the we put basically we're putting down 60 or 70 on this dream house you're making a decision to take a step back oh yeah but it's still house debt what would how would you coach somebody well i would ask them about what's the drive what's the push now yeah why right now you just paid off your home so you've got a great opportunity to never ever go backwards right now? Yeah, why right now? You just paid off your home. So you've got a great opportunity to never, ever go backwards. Now, if someone said, well, that's best case scenario

in my mind. You paid off that house, you go, I'm not doing a mortgage again. But if someone said, hey, we do put this down and it's 70%, and I'm going to go and I'm going to do a 10-year mortgage. Or a 6-year mortgage. Or whatever. I wouldn't have a problem with that.

It's just a matter of where people, where they are. This thing with this age and how they are, I think they're goal-oriented. They could continue to do this without having to go back into debt anymore. You're exactly right. But if someone was impatient, you know then I'm going, what's driving this? That's right. Like, what are you doing? Because you guys, you're young, so you all have one.

You're on baby step number seven. And so you want to be careful of looking at this. Because as soon as she said shop, I started to think, uh-oh. You know, because then it's going to be need another shop. And then the business thing needs a new tool. And so it's like, okay, is this on to the next thing or is this on to the next needed thing gotcha and so but yeah if someone wanted to take a i have i've had someone do a five-year mortgage you know they were paying like 10 grand a month but they were like this thing is out of my life in a year gotcha you know they committed to it so it's it's it's decision

time um but you know again it's a matter of shift in mindset. All right, let's get back to the phones. We've got Twyla on the line. Twyla, how are you? I'm doing good. How are you? I'm doing good. I'm working here with Deloney, so I need your prayer. We're having fun. You got it.

How can we help you? That's good. I'm a first-time caller, and I'm kind of nervous. Oh, don't be. It's a minute to try to get it out. Yes, ma'am. Just take a breath. I am a newlywed, and we're dealing with a surprise medical billing, pretty high.

My husband went to the emergency room in January. We got married in April, and then we got a statement in June for $4,500. What did he have done? Nothing. What? Absolutely. He went with his heart racing and he had been having that trouble quite often. So he just wanted to get it checked out while it was happening. Okay. So they did use some, you know, they did use some machines on them. Yeah, they did an echocardiogram. Right, but the major part of the bill is the emergency room. That's right.

Over $3,000 for walking into the emergency room. That's right. Yep. Unbelievable. So I called them to, you know, talk them down or say, we can't afford this. Right. What did they say?

The insurance covered none of it. Yeah. So they said it stands the way it is. Yeah. Here's the deal. Here's what they'll do, Twyla. They'll end up selling that off to a collection company that will work with you. So I want you to stay on top of it.

Write letters. Keep copies of the letters. To the collection agency, right? To the collection agency. Keep a file. You keep calling. Somebody's going to work with you. And until then, you send them what you can afford and not a penny more.

Listen, I want to thank all you listeners for tuning in. I want to thank Kelly Daniels, social producer, Ben Hill, producer, and thank you, John, for hanging. Thanks, Chris. This thank you, John, for hanging. Thanks, Chris. This has been The Dave Ramsey Show. This is James Childs, producer of The Dave Ramsey Show.

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