The Ramsey Show - App - Don't Make Excuses - Just Do It! (Hour 2)

Episode Date: August 21, 2019

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Music Music 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. This is your show. Thank you for joining us. Open phones at 888-825-5225.

That's 888-825-5225. John starts off this hour in Philadelphia. Hey, John, welcome to the Dave Ramsey Show. Hey, Dave, how are you? Better than I deserve, sir. How are you? Thanks. I'm pretty good.

I'm 29 years old, and I'm married. I have a one-year-old baby. I'm currently $150,000 in debt. That includes student loans, car note note and credit cards i make about 43 thousand dollars a year and you know i can barely afford um you know just paying my bills um any any help any tips is your wife working outside the home? Unfortunately, she's not working. She's looking for employment, but so far she hasn't gotten one yet. What do you do for a living?

Right now I'm an Uber driver. I went to school for health science. You went to school for what? Health science. Health science, okay. Yes. And what would be the career field that would go with that? Well, pretty much, you know, I was just working in office administration, clerk, and human resources,

but not working in human resources per se, most likely helping also behavioral health as well. But all these career paths offer for an entry position about $32,000, between $30,000 and $35,000 a year, which would not help me afford my, you know, just help me pay my bills. That's why I have to drive. So how much of the $150,000 in student loan debt? $92,000 is for... So you spent $100,000 getting a degree that you can't make $30,000 from? Yes. Wow.

Okay, $92,000 in student loans. What's the other $40,000? $92,733. And what's the other $92,000 is student loans. What's the other $40,000? Yes, $92,733. And what's the other $60,000? The other $60,000, I have a car note that's $16,000, almost $17,000 left. That's my remaining balance. My credit cards are about $14,000, but I have $17,000 that my father actually took out. He took out $17,000 for me when I first entered college, which I had to repay.

That was the deal. So you owe your dad $17,000. Yeah, but, I mean, he got a parent's loan, so I had to, you know, so right now they're, well, we have two-year forbearance from the federal government. And I have salary made as well, which, you know, right now they're calling, but I can't afford paying $600, $700 a month. Mm-hmm. Okay. All right. Well, it sounds like more than anything you have an income issue.

And this you already knew. You didn't need me to tell you that. But what's your wife's degree in? Well, she's from another country, but she's a lawyer. She just can't transfer over like that, and she has to go back to school. But it's going to take some time. Right. So is she going to do some paralegal work or something in the meantime?

Right. That's what she wants, but so far she can't go back to school. We can't afford. No, you can't afford any more debt. You don't have any money but can she not go in with her current legal uh uh background from another country and do some paralegal work here can she not get a job as a paralegal um i i don't know we haven't looked into it yet yeah we we've had this conversation but but we we haven't looked into it yet. Well, I don't know much about your degree field enough to make any intelligent statements about it other than what you told me, okay, in terms of what you should do with your career. tell you is this what have we got to do to be making 90 000 instead of 43 000 five years from now three years from now okay what what career field are you going to go into where are you

going to do what what track are you going to go into that causes your income to go up substantially and the same thing for her because here's the. You guys are making it on 43 barely. But you're swimming and losing your breath. You're treading water, right? So you got a car you can't afford at 43. But really, 43 has got to change. We got to do something to get your income up. Uber is not going to be your answer.

It may be part of your answer, but a full-time job plus Uber, plus she gets a full-time job. Let's just say we went from 43 with part-time jobs, her working, and you doing a full-time job plus Uber, right, that we got you up to a hundred well all of a sudden if you can make it on 40 all of that extra can go on this debt and you're looking at three four three and a half years to get out of debt a hundred percent out of debt and you start paying off the credit cards you start paying off the car you start paying off the you know your father and the student loans are going to be the last things that get paid off because you're going to list your debts smallest to largest and attack them in that order. We're going to get on a detailed written budget, which you're not doing yet.

When you start doing that, you'll feel like you got a raise. But still, you're going to find that $43,000 with a family of three in Philadelphia with the bills you've got, you're treading water. You're not going to make big jumping leaps ahead so the only way to fix that that i can see is an income and that's that's her working i'm sorry she's going to be working and you working uh you know let's just pretend you took your 32 or 35 000 day job in your career and that's leading you to a 60 or an 80 000 job over the next three to five years and you drive uber at night some weekends or deliver pizzas or whatever you're going to do

and you just put you know you put all of that together and you then are making more than 43 total and she goes and makes 40 see we get you up to 100 there it starts changing this whole equation i'm not saying you have to have 100 it's's not the magic number. You can do it on 70. You can do it on 80. But I agree with you. I don't think you're doing anything irresponsible or crazy or you're not spending like you're just some kind of spoiled princess or something. That's not going on here. You don't have wiggle room in your budget much. So write it all out. Get on dollar.com hold on i'm going

to send you a copy of the book the total money makeover it will show you exactly what to do as you get your income up but just listening to you i think you're doing a pretty decent job with what you got but what we need is you know more wood to throw on the fire here. That's what it amounts to. And again, you start looking out there long term, three, five, ten years. What steps have I got to take to increase my income substantially over that period of time? And part-time jobs in the meantime.

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Hey, guys. How are you? Hey, Dave. Hey, how's it going? Pretty good. Welcome, welcome. Good to have you guys. How can we help?

So we were wanting to ask you, how can we prepare better for taking care of our elderly parents? You build wealth you get your act together because the stronger you it takes strength the weak can't help the weak only the strong can help the weak and so if they're not in if they're not taking care of their finances to be able to retire with dignity then and and you want to be in a position to help others including them, then you get yourself out of debt, you build wealth, you invest. And so if you're sitting there with a million dollars in your 401K, there's a lot you can do to help somebody, right?

Yeah. So there's not a special elderly parent's savings account program. It's just pile up money, and then you've got that to do a lot of things with and help a lot of people with and certainly your family would be in the list but there's not anything that's uh magical or different about it being in the family perfect that makes sense yeah we appreciate it cool thanks for dropping by guys thanks god bless all right tyler's in chicago hey tyler how are you, how are you? Good, how are you? Better than I deserve. What's up? I just have a question.

I'm 20 years old, and I have a little bit of debt, which will be paid off by Halloween this year. And then I'm looking towards, I don't know what I should do first. I want to buy my own house house but i also want to save for retirement and so i'm just curious as to which one i should do first if i should do them both first i don't know are you living at home now correct yes i am okay so uh first thing i would tell you to do is um once you're clear of the debt is go ahead and get your own place as a rental okay establish yourself that way make sure you have your emergency fund of three to six months of expenses once you're debt-free

at that point that's what we call baby step three and and then sometimes people delay starting their retirement for a short period of time a year or, that kind of a thing, in order to very, with focused intensity, very quickly build up a good down payment above their emergency fund. Now, you're debt-free, you got your emergency fund. Then before you start retirement, you sort of take a pause break there in the middle and pile up cash for your down payment. And if you did that for a couple, two, three years, that'd be okay, because you'd still be only 23, 24 years old when you started saving for retirement

and you'll still be wealthy. There's not any question about it. So you're well on your way to do that. We call that baby step 3B sometimes, you know, because it's between baby step 3 and baby step 4, in other words, and you temporarily stop the baby steps, you know, in the middle of that between 3 and 4 and build up your down payment for a house at that. But in the meantime, what I would tell you to do, though, is just get you an inexpensive

place to rent, maybe some roommates or whatever, and establish yourself out there in the marketplace too. That's not a waste because you're not looking at it as a way of life. You're not going to do it forever and ever. You're just doing it for a short period of time while you're saving up. But you're also establishing yourself emotionally and developmentally, you know, adult-wise in the marketplace. And that is very, very helpful.

Hey, good question. Thanks for joining us. Brandon is next in Columbus, Georgia. Hi, Brandon. How are you? I'm doing good, Dave. How about yourself? Better than I deserve.

What's up? Good deal. I found your program about a month or so ago, and I'm getting kind of fired up about attacking some debt I've built up recently. So I kind of wanted to just bounce my initial plan off of you. I'm 28 years old, like I said, and I went out and bought a house three years or so ago and maybe made the mistake a lot of young people make and bought a house for what the bank

told me I could have afford. I didn't pay too much, but I kind of had to use credit cards to supplement that income over the last three years. I now make enough where I can probably afford the house better than I could before. So I still want to attack the debt. I'm just wondering what you think. I've had some expenses go up with a girlfriend moving out recently, so I'm trying to balance it all out. What's your income? I make $50,000 gross. How much credit card debt have you got? $13,000. $13,000 gross. How much credit card debt have you got? $13,000.

$13,000. Okay. Yes, sir. And how much is your house payment? It's $900 a month. Okay. That's manageable. What's your first big step is, Brandon, is you've got to really learn to make every dollar every month behave.

And that's called a budget. And that's a new thing to you but when you start doing that jump on every dollar.com and get that going for your app on your phone and and or on your desktop whichever way you want to do your budget but you need to get that set up and really make those dollars behave when you do you'll feel like you've gotten a raise you can pay off 13 you can pay off 13 000 in debt making 55 with a uh with a 900 house payment that's very very doable um yeah and i recently got this raise and it kind of didn't really affect me like i thought it would because all the extra income is going to

debt so i really want to get back to square one and yeah and actually bring this money home i'm wondering if i should maybe sell the house. No. No, I think you're fine. The house doesn't sound like it's unreasonable to me. It sounds like it's the thing that you've just not had a plan where you were detailed out making every single dollar behave. And when you do that in writing, it's going to change everything for you. And really start, you know, get that EveryDollar app and get going. It's free to use and you can get set up on

it and it changes everything. It really, really does. So, hey, thanks for the call. Appreciate you joining us. Steve's in Greensboro, North Carolina. Hey, Steve, how are you? Hey, good. Thank you for taking my call. Sure. How can I help? My wife and I work in the baby steps, and I just wondered how you generally tell people to handle the cash value in a whole life insurance policy that's already paid for. I didn't want to get taxed on it by taking it out or something. There's going to be probably no taxes on it. Ninety-something percent of them have no taxes because your basis in it is what you've paid into it,

and they suck so bad that it's probably not grown above what you've paid into it so okay if it has you may have a tiny bit of taxes but your basis for tax purposes is all that you paid into it so you go back and add up everything you paid into it and compare that to the cash value it's almost always greater. In which case, you're taking a loss, but you're not allowed to take a cash loss on a, I mean, take a tax loss on a cash value policy. So, again, if it's a very, how long have you had it? It was a 20-year whole life policy, and I paid it off two or three years ago.

Okay. So, how much have you put into it? Do you know know it was like 50 000 when i bought it it wasn't a real expensive one i mean you put 50 000 into it well that's what the maturity you know that's what they know what i'm asking is how much have you written checks to the insurance company for it was like 40 a month for how long 20 years You've been doing it for 20 years? No. Yeah.

Oh, you have? Yeah, it's paid for. It's done. Oh, God. And the policy's still there. Okay. Well, you're using insurance, whole life insurance verbiage, okay? Life insurance is never paid for.

All you do is prepay it. Uh-huh. Okay? It's never paid for because as long as you're alive there's a chance you're going to die so there's always a cost associated with it you just gave them so much money that they're giving you a free early they're giving you a free policy okay so forty dollars a month um for 20 years right right okay and that's all you've got in it? Right. Okay.

So you've got about $10,000 in it. What's the cash value? I haven't looked at my statement, but I was going to do that if I got off the phone with you. If the house is not over $10,000, and I doubt it is, then you're not going to have any taxes. Okay. That's what I'm asking. You just call your insurance guy and say, I want the cash value, because that was one of the selling points when he sold it to me. He goes, oh, you can withdraw it, blah, blah, blah.

Yeah, well, you can withdraw it, but if you withdraw it, of course, it cancels the policy. You understand that? Okay. Yeah, but you need to make sure you... As long as I have term life, I'm good. Exactly. Make sure you've got the proper amount of term life insurance in place first before you cancel a policy. And then, yes, I would cancel that trash and use the money to advance your wealth rather than theirs. This is The Dave Ramsey Show. Thank you. I'm Alan and Sandra are in Denver. I see on my screen you guys are debt-free.

Well done. Hey, Dave. Love it. How much have you guys paid off? $74,858.93 in 13 months. Good for you. And your range of income during that time? What was that?

Your range of income during that time? $115,000 is what we made. Okay. And that was right after we got married. Fun, fun. And what do you guys do for a living? So I work at a cheese factory and my my wife is actually a food scientist ah very good okay what kind of debt was this 75 000 most of it was my student loans

from college but 10 000 and also my car and 10 000 of it was alan student loans okay so you guys just got married a year ago right right? Yep, correct. Okay. So you're dating, get engaged. At what point did you find out how much debt she had, Alan? Well, it was while we were dating, actually. So I had mentioned to her, I threw around the name Dave Ramsey, and she was like, who's that? I'd never heard of him.

So I had been listening to you for a long time, I threw around the name Dave Ramsey, and she was like, who's that? I'd never heard of him. So I had been listening to you for a long time, and Sandy just took to you like fire to a Christmas tree. And when we got married, she was like, we are doing this to get rid of our debt. And that is just what we did. So I knew about her debt the entire time. I had about $9,000 of my own. Yeah, I got it. I got it.

And she had about $65,000. That's how it worked. So as soon as you get married, you just come home from the honeymoon and get after it, huh? Pretty much, yes. That is exactly what happened. And it was rice and beans, beans and rice. Okay. That was what we did.

We lived on probably 30,000 that year. That's particularly tough for a food scientist, yeah. I know. It helped when she got to bring home a lot of free pizza. That's particularly tough for a food scientist, yeah. I know! It helped when she got to bring home a lot of free pizza. That was very helpful. That is helpful. That made my mouth water. That's good.

13 months. This is unbelievable. You lived on nothing. Did you sell stuff or anything? We didn't sell anything. we just literally spent no money at least weekly alan would complain cindy we're not doing anything we have no fun can we go out to eat was the biggest thing for me to which sandy says hey you started this you brought up dave ramsey pretty much i'm the one that mentioned your name dave you're the one brought up dave ramsey pretty much i'm the one that mentioned your name dave

you're the one brought up dave ramsey now you're wishing you didn't yeah pretty much so it was definitely worth it so what do you guys tell people the key to getting out of debt is um stick to it and don't make excuses we found the worst part was uh people telling us um oh it must be nice. You know, we could never do that. We have kids, or we could never do that. We don't make $200 million a year. But people will just make excuses until their heads fall off,

and they will never, ever actually sit down and do it. But the key is just doing it. And I would say it's also important to know the reason why you're getting out of debt. For us, Alan works at the factory right now, but he wants to be a pilot. So now that we're out of debt, he's been able to go towards his dream job and fly an airplane. So that was a big reason for me, motivation. We have our six-month emergency fund already. All right.

You're rocking this, man. And so you're working towards a pilot license then? Yep, yep, yep. I take the written next month, so I'm pretty excited. That's fun. Congratulations. Well, the stuff showing on the pictures are showing on YouTube. You've got airplanes all over all the drawings and everything.

That's very good. Hey, you've got to have visuals like that to motivate, man. I mean, it just keeps you moving. That's very, very important. Helped a lot. Helped a lot, that's for sure. Yeah. Okay, so how long did you all date before you were engaged and how long were you engaged before you got married my dad told me you'd better you'd better date a woman at least a year before you get married and so we lived 40 minutes away worked in opposite cities that we lived in and

so it was just it was pretty difficult we dated for a year and a little bit and he proposed and then we were engaged for eight months okay so 18 months from meeting to marriage where well there was some friendship before we started dating it was more like two years but yeah yeah i mean roughly okay but where in that 18 months did you guys learn that he had nine thousand dollars and you had sixty five thousand dollars in debt how far into the dating relationship i'm trying to remember i think it was pretty early on because i was doing my version of a budget at the time which was looking at my credit card statement from the previous month and saying um maybe i'll'll eat in and out less next month and just loosely saying that. That's the thing I think I knew from meeting Sandy when she told me she had that much debt.

I don't remember exactly when it was, but she's such an organized, ambitious person that I kind of knew right away this isn't going to be something we have for long. Right. Okay. So, yeah, you knew you just had to get on the same path on how we were going to do it, but for sure this wasn't somebody that was going to just take that as status quo and go, oh, well, we're going to be here forever. I knew that right away, exactly, yeah.

All right, so that's why it didn't disturb you when you eventually get down and see $65,000 laying there. Yeah. you when you eventually get down and see 75 or 65 grand laying there yeah yeah it's an important part of this conversation because there's so many people listening and i get so many people jokingly say we need to start a dating service around here to match up dave ramsey listeners right but but it's not necessarily that's why i haven't done it one of the reasons because it's not necessarily true uh you guys did it exactly right you weren't dependent on money for your relationship but in the in the process of your relationship evolving you made the right discoveries there was no hiding anything and the biggest discovery was not necessarily the amount of debt but it was the type of person

and how they were going to treat that debt. And that was the perfect answer. Yep. And, yeah, Sandy was much more comfortable after hearing, when I told her about the Dave Ramsey thing, you know, after she realized this is all stuff that's just in the Bible. It's not something that he just pulled out of his head. It's stuff that's directly in the Bible. And it's all right there for us to read and, like, confirm. And it works perfectly.

I'm so proud of you guys. Did you have people cheering you on? Because you went hardcore. Well, we actually moved to Colorado the day after we got back from our honeymoon, and so we didn't have or know too many people. Okay. So there was no one saying, you're idiots. There was not really any cheering us on.

We were each other's coach and supporter, and it worked. Yeah. worked yeah yeah well that's kind of a nice way to do it you don't have any of the outside pressures one way or the other but uh from a distance were your parents looking at you scratching their head or were they cheering you on they were absolutely cheering us on her parents and my parents both were probably our biggest supporters. Constantly I'd give asking updates and stuff like that. That's good. So a huge shout-out to them for sure. Yeah. Well, that's a good note to the moms and dads out there of young people getting married.

Give them some attaboys, some attagirls. And they had all heard of you from our church and stuff like that, so they were very familiar with that plan. Had never tried it themselves, but were super supportive of us doing it. Very cool. What a great start you two got. I'm so proud of you. Well done.

We got a copy of Chris Hogan's book for you, Retire Inspired. That is the next chapter in this story. We've just finished one chapter. And the next chapters get wealthy and be outrageously generous as you go along. Millionaire status, okay? Sounds good. Thank you so much, along. Millionaire status, okay? Sounds good. Thank you so much, Dave. And pilot license, too.

I want to hear about it later when you get it. Well done. Yep, we're pretending we're in debt, and we're saving up for flight school now. There you go. Alvin and Sandra Denver, $75,000 paid off in the first 13 months of their marriage, making $115,000. Count it down. Let's hear a debt-free scream.

Three, two, one. We're debt-free. Yeah. Woo-hoo-hoo-hoo. This is how you start right here, people. Wow. Wow. So any of you that want to badmouth millennials, you just keep listening to this show and you're going to hear millennials that sound like that.

There wasn't anything participation trophy there. There wasn't anything there except get them. There's a lot of get them with those two. They're after it. They're going to be big deal. They're going to be. I mean, good Lord. Young, making one hundred fifteen000 a year, no debt.

And they already learned to work together. Some of you have been married 20 years. You still can't work together. This is the Dave Ramsey Show. We'll be right back. Darren is in Lincoln, Nebraska. Hi, Darren. Welcome to The Dave Ramsey Show. Hello, Dave. It's an honor to speak with you.

You too, sir. What's up? Well, first, we want to thank you for giving us the guidance and uh the blessings to help take control of our money and really learning to be intentional about our finances so my wife and i are excited to be moving into baby steps four five and six and wanted to kind of pick your brain and ask for some guidance on as we head into this new part of our life. Cool. What in particular? Well, I just celebrated my 50th birthday. My wife, her 46th. And so we've been grinding the last 19 months to get through the first baby steps.

We kind of wandered off course for about a decade and we paid off about $74,000. Good. And we've socked away about $36,000 plus another $9,000 because we're concerned our home is going to need a new heating and cooling here down the road pretty quick. So we feel like we're prepared. So our question is, we've got two kids. They're a junior and freshman in high school. Currently, we've got some 529 plans set up. So we know that's pretty urgent. We've got a nice income. She's a public teacher.

I'm with a nonprofit. So looking to match out or, excuse me, max out our Ross and my simple IRA. And then balancing with the home. Just looking for your guidance on what we want to obviously get to that 50%. What is your household income? Well, we're at about 182. Excellent. Very good.

Okay, cool. Well, I would set up Baby Step 4 at 15% of your income for right now because the thing that's bearing down on you is two college tuitions. They're coming at you pretty fast. How much is currently in those 529s? Well, we've got a combined 76,000. Okay. Well, what I'd do is lay out my budget and say,

what do I need to send these two kids to school? You know, a couple hundred grand probably, give or take, and, you know, in the next so many years. And then I'm going to just finish that off because it's right there in front of you. You're not going to really make that with investment returns. It's going to be money you just stick aside. And so I'm not going to pay extra on the house until that's done because it's right in front of you.

Correct. Yeah, so baby step six is on hold. Do we knock college out is what I would do. And I would limit your retirement savings to 15%. But I would put 15% in. And then I'd throw any excess I can at college until I hit my college budget. And you need to do some college shopping and say, this is what we're going to spend on school. And we've got this many months to get there.

And you just back into it. And just like you've been doing, you hustle and grind and you you build that account only this time we're building savings rather than paying debt but it's still a math thing out of your budget out of your lifestyle uh but you got 76 if you say we need 100 i got 124 i need you know i got 20 months to do that that's five thousand dollars a month right i mean you know you just back it out like that right and whatever whatever it is whatever the number is that you need uh minus 76 000 then then we got to look at how we're going to cash flow into that in the periods of time that you're going to need and once that's done then i'm going to lean over and knock the house out once the house is knocked out of course um the mortgage is knocked out, that is, then we'll swing back by and maybe step seven and maximize all retirement at that point.

Does that make sense? Absolutely. A question in regards to our 15%. My wife is required to put in 9.9% as a public school teacher. Does she have any control over what? Does she have control over that? She really does not. And so, you know, that's a set plan.

She does not. So am I correct that we should avoid or not look at that 9% and look at 15 separate? I always discount it. In other words, I don't give it a full credit towards the 15. But in this case, I probably would just count it towards your 15, and let's get this college tuition done. You're going to blow past these steps so quickly now with your big income. It's just a matter of rolling on through this.

Because we're not setting up what you're going to save for retirement for 10 years. We're setting up what you're going to save for retirement for four years or five years is all. What do you owe on your home? We owe $131,000 on our home. It's valued at about $265,000. Okay.

I was guessing, and I hit about right. Okay. Here's what's running through my head. Let's say you needed $150,000 more for college, and you need 150 more to pay off your house it's 300 grand while you're putting in 15 including her 9.1 if we count it you're going to be through 300 grand in what three years right absolutely yeah so the house is done the college is done and then the 9.1 is irrelevant because we're going to just load up on retirement and savings and build wealth at that point.

You're at baby step seven. So this is not a, when we set your 15% and your baby step four, we're not setting it for 20 years. We're setting it for 36 to 48 months. Fantastic. You see how I am? That's why I'm kind of Doing this from a different direction Good question man, thanks for calling Open phones at 888-825-5225

Tony's in Pensacola Hi Tony, how are you? Hey Mr. Anzi, I'm doing good, how are you? Better than I deserve, what's up? My question is about How much wealth we should have tied up in our house. My wife and I are looking at buying a piece of acreage out in the country and building a home. But we're trying to decide exactly how much money we should put towards it,

the percentage of our wealth versus non-retirement. The wealthier you get, the less percentage is going to be your home. Okay. I've got a friend that's worth about $600 million, and his house is $15 million. But that's a tiny percentage of his net worth. You see what I'm saying? Right.

And that's an absurd example, but it illustrates what I'm saying. And if you have a net worth of $500,000, you might have 80% of your net worth tied up in your house, right? So what's the acreage worth, and what would the house be worth if it wasn't on acreage that we're talking about doing? Well, the acreage I'm expecting to be anywhere from $80,000 to $200,000. We're still trying to find it. And then right now our current house is worth $250,000. And then we've got a vacation rental in Gatlinburg that we're actually thinking about maybe selling.

So maybe $400,000 for the house. So total of about $600,000. That you'd spend on the house itself to build it? No, probably about $400,000, $400,000 to $500,000 for the house itself, and then I guess $150,000 for land. Okay, all right. So you have $600,000, $700,000 tied up there. And how much is in your other accounts and so forth?

We've got about $80,000 in our retirement accounts between 401Ks, Roth IRAs. We've got $675,000 in non-retirement investment accounts, mutual funds. Okay. And then we've got about $140,000 in cash. Okay. So you're going to approximate 50% of your net worth in a paid for property at 600 grand or so out of a million two million three net worth that's not unreasonable okay um we're just thinking i'm we're also just kind of trying to think long term i mean because i'm 39 she's

33 so we didn't want to the thing is this. This house is going to be sitting – this is a 20-year house. I mean, it's not a five-year house. Correct. We're looking at this as our retirement place. We just, you know. Well, maybe. It's at least 20 years. It's going to go a long time because it's got a lot of your dreams right now

wrapped up in the piece of ground and all that kind of stuff. So this one's going to last. My point being that it's going to sit there. It's going to go up in value, but not nearly as fast as you're going to be adding to the other parts of your wealth, given that you have no house payments at all, no debt of any kind. And so when you call me back in, I don't know, four years, five years after this is all done, you know, you're going to have $5 million net worth,

and a million-two of it's going to be in the property. Right. That's where you're headed. And, you know, that's five to ten years from now, something like that. I didn't ask your income yet, but that's kind of the feel of the vibe, the rhythm of the numbers you're giving me. That's how I'm feeling them, the colors I'm seeing in these numbers. But that's, you know, it's not mystical. It's just a matter of that's how the compound

interest will work because you're going to continue to load the mutual funds and the retirement accounts and that kind of stuff and end up with substantial dollars. Yeah, I think you're fine there. I wouldn't want you to be at $5 million and have half of it tied up in your house, though. That was starting to bother me. So good question. Thanks for calling in and that puts us out of the Dave Ramsey Show and the books.

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