The Ramsey Show - App - Draw a Line in the Sand With Your Money (Hour 3)

Episode Date: January 26, 2024

Девочка-пай Live from the headquarters of Ramsey Solutions, it's The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I'm George Campbell, joined by Jade Warshaw, and this is your show, America. We want to help you take the right next step with your money in your life. The number to call is 888-825-5225. Jacqueline starts us off in the North Pole, literally. Wow. Jacqueline, is this true information?

Yes, we're hanging out here with Santa in negative 40 degree weather right now in Alaska. Holy moly! I wanted to pull the Will Ferrell, you know Santa? Wonderful. My nephew actually has said that, and it's awesome. It was a beautiful moment for me because I love health. Incredible. Well, it's funny you guys talked about side hustles earlier because we live in the North Pole.

There's not a whole lot of resources up here, and it's very expensive to live here. So my husband got stationed up here. He's Air Force, and he got stationed up here, and we had some major sticker shock when we got up here because things are just so incredibly expensive. So I started babysitting as kind of like a side hustle to pull in a little bit of extra money, and it exploded into this ridiculously good-paying job. Wow. So we weren't lying.

That was one of the ones we mentioned. Right. I can earn anywhere between $6,000 to $11,000 in a month. Woo! Just depending on the needs at the time and how much I can handle. How many hours does that, how many hours does that equate to? Just curious. I usually open from 6 a.m. to 6 p.m. Okay, so it's like a daycare. Roughly. Yes, yeah, 100%. Okay. But I also homeschool my, my five children, um, at the same time. So it's has to like the, the workload has to coincide with what I can manage with that

as well. So that's why it fluctuates so much. My question is, um, I have been contemplating possibly taking this business to like turning it into an actual business. I'm wondering, though, if I should because, of course, being in the military, we don't know how long I'm going to be here. And, I mean, that could range anywhere from, you know, another year to maybe three years, depending on my husband's job. What does that mean when you say turn it into an actual business? Is that? Like, actually renting space and turning it into an official daycare. Okay.

And the purpose to doing that would be so that you can bring in more kids and earn more money? Yes. Because there's a desperate need. Like I've had people call me crying because they desperately need to go to work and I just don't have any more room. And it's just, it's heartbreaking to have those phone calls and just say, I'm so sorry, I just cannot do anything else. So your goal is to rent some space locally, hire more people, and expand this operation?

Correct, yes. Okay. And what's your question? Well, the issue is, I don't know, one, how to even begin doing that. And then, two, if it's even worth it to do that because like I said we could be gone in a year or two well when I when you mentioned that to me assuming assuming all the other things are in in place for a moment assuming you don't have any other debt assuming that I my first thought would be like okay what's this going to cost me and I'm looking around at buildings and then my biggest my brain goes to insurance because I'm thinking, okay.

Liability insurance is the hardest part of daycare. Yeah. So that's where you're, I believe that that's where your research is going to start. Have you ever already looked into that? I have looked into that and it is quite expensive here. Everything here is just, like I said, I mean, you take it from the lower 48, anything that costs, you know, I don't know, $10, you multiply it by about three. And that's what the prices are up here.

And the question is, because you have such a big, if you have the demand that you say you have, and if you're thinking to yourself, listen, I found this place on the corner, I know what the rent is, I know what the liability insurance is going to cost me, with the demand that I think I'll have, will I be able to offset that in a way that I can actually make a profit? That's the question. Got it. Okay. Okay. And also be thinking

about licensing, board of health, background checks for employees. There's a lot going on here. Getting an actual business set up, business banking, and all of that is going to be a part of this. So I would, your next step is just do a lot of homework and maybe talk to people who have been in this business locally. Because I assume there's daycares in the North Pole area, right? Yes. Just not enough. There are a few.

Yeah, there's just not a lot because a lot of them go under due to the financial stresses, everything you guys just spoke about. And I don't want that to happen to you. If that's happening, there's a reason for it, and it just may not be a sustainable business. And that might mean you need to scale down the business and go, all right, I can only take on five kids a month, and I'm going to do it out of my house until we move, and I'm not going to make this a business. Or you could figure out a way that's, listen, I'm trying to think through this with you a I hear what George is saying there it might be because there's just a an issue with the how expensive things are that's why people's businesses are failing or listen talk to those owners and figure out what was going

wrong because some people they're good at watching kids but they're not good at running a business right so it could be that their business sense was off if if whatever you find out, you could also get with a buddy and be like, listen, I've been running this daycare. What would you think about, would you be willing to open your home and run a daycare? I'll show you how I do it. So it's almost like you're creating a bit of a franchise out of this with other moms that you know,

and maybe they're opening your homes and you're helping them get that started and you're taking a cut. There's a lot of things that you could do here to get creative. But I think the cru helping them get that started and you're taking a cut there's a lot of things that you could do here to get creative but I think the crux of everything that George and I are saying is whatever you decide to do you're stacking up cash and you're not going into a bit of debt in order to do it because right now you're in this place where it's cash flowing it's making you a lot of money what I don't want is for you to get excited

about moving forward get locked into something and feel like your only option is to go into debt or take out a loan in order to fund some aspect of this business. Fair? Right. Well, I have one other option that I might be able to consider. And they're actually the woman that built the house that we currently live in because we have no debt other than our house currently. We have plenty put we have plenty, plenty put aside for, um, retirement considering our ages and we've, we've got every, like everything, kind of our ducks are in a row, so to say. Um, and I, I just don't want to jeopardize that because my oldest son is a special needs and probably will be, um, on dependent on my husband and I for the rest of his life in one sense of the word or another. So we're trying to find like my, my original dream was to become a pilot and I for the rest of his life in one sense of the word or another. So we're trying to find like my,

my original dream was to become a pilot and I still want to, um, achieve that dream at some point. Um, but the older I get, the less likely it seems that that's actually going to happen. Um, so I'm trying to look for alternatives and I, my, my, one question to you guys would be like, could I run a business like this from long distance? Like say we were to move, excuse me, say we were to move, excuse me,

say we were to move and I could run the business. I would just sell the business before you move. I agree. I think it's going to be too much headache and it's going to end up causing you financial stress and emotional stress. Especially with childcare. I just feel like that could, it's got so much. It's not exactly a remote business.

You know what I mean? Right. Right. Okay. So I would just sell it and hope someone would buy it. And that's one of the reasons I'm not going to debt for this. We see too many stories of people taking on $200,000 in SBA loans, business fails. Well, guess what?

You don't get to just erase that debt now. You still owe $200,000. So move slow, move at the speed of cash and remind yourself why you even did this. It was, hey, I just want to make a little extra cash. It's okay if you don't turn this thing into an empire in the North Pole. But what a cool story that would be. That would be amazing. She's crushing it out there.

She's on her way. All right. Thank you for the call, Jacqueline. Stay warm. More of The Ramsey Show right around the corner. We'll be back. Welcome back to The Ramsey Show. I'm George Campbell, joined by Jade Warshaw. Open phones at 888-825-5225.

The Ramsey Show question of the day is brought to you by Neighborly, your hub for home services. In case you're a new listener, you might be wondering, what does that mean? Well, Neighborly is a family of locally operated home service providers who are dedicated to giving homeowners excellent service. So start your search today at neighborly.com slash Ramsey. Today's question comes from Kate in Nebraska. She says, I've always told my 18-year-old son to avoid debt, which means he has no credit score.

A family friend who is the same age recently tried to buy a car insurance and was quoted outrageous prices because she doesn't have a credit score. She was able to get added to her grandma's policy for less than a quarter of the price. This has made me think he should get a credit card and build a good credit score. How can a young person get insurance at a reasonable price with no credit history? Well, you know, there's something to, there's a couple of areas to this, George, that my mind goes to immediately. Number one, the type of car. That's true. Number one, if the car is paid for or not, definitely can increase your rate. Like obviously if you have a brand new, you know, 2023, what's a nice car, George?

I don't know cars like not a Civic, but like a like a sporty, sportier car. Yeah. The Camaro. Like the color of the car matters. Like if you get a Camaro in red, listen, that insurance is bonkers. And there is just something depending on the state that you live in. If you live in South Florida and you're a new driver, like it's just going through the roof.

So there are a lot of factors there. But at the core of this question is really the credit score. And that's what I think that we need to dig in the most because- It's one factor. So Jade, I actually wrote an article on the Ramsey Solutions website called Insurance Score, How Insurance Providers Used Your Credit Score. So in here, I talk about the other factors because credit score is one factor. We will admit that. But there's other factors like your age. The younger you are, the more expensive it's going to be.

I'm sorry, but teenagers are likely to get into a fender bender. Yeah, that's not going to change. And so, you know, Gen Z is getting the mine shaft here while boomers get the gold mine. I'm sorry. Your location, like Jade was mentioning, high population areas are going to mean higher premiums rural areas lower premiums again it's all about risk for this insurance company it's not because they hate you it's all a measure of risk and lastly it's your history of claims so uh if your kid has had a fender bender already their insurance is going to go through the roof and it it stinks. So those are a few factors.

But if you don't have a credit score, there's still a lot of ways to get a better deal on your premiums, which is pay your other bills on time. They're going to look at other payment history. And so you want to avoid those late penalties. You also can bundle auto insurance with other types of insurance to save. You can raise the deductible if you guys are out of debt, fully funded emergency fund, a higher deductible puts a little bit more

risk on you, but it lowers your premium. And the other thing, Jade, is people will shop with one company. They'll go with some name brand they saw on a Super Bowl commercial instead of shopping around. So what I do is I shop with one of our Ramsey Trusted Pros. So I get in touch with my people at Zander Insurance and I say, hey, can you shop the top companies and tell me what the best rate is? And these are only really highly rated companies. These aren't Bobo brands. Yeah. But they also may not be the big ones you've heard of. That's true. That's a good point, George.

That can also save you big money just going, oh, we're not getting a good deal. I need to shop with an independent broker. That's a really good point. And there's also a deeper level to this conversation that i just want to tackle real quick because the fact of the matter is when you living a life without a credit score does is not always the easiest choice in the moment because you can always find like a bunch of kind of like little factors well it'd be it'd just be easier if he had a credit score, then he'd just have a lower rate. And you kind of think of it like that.

And that, that pops up a lot of times. Think about renting a car. People say, oh, if you don't have a credit score, you can't rent a car. And I'm like, you can, you may have to jump through a few more hoops. Like, let's be honest about that. You may, they may make, take more of a hold on your account. You know, all these things that, yeah, if you had credit, they might not about that. They may take more of a hold on your account. All these things that, yeah, if you had credit, they might not do that. But if you had credit, do you also know what you

have is debt? So you can't have one without the other. Same thing with credit cards. People are like, oh, it's just easier for me to just pull out my credit card and swipe it. I'm like, yeah, that's why you swipe it so much because it's easier. So there's a discussion here about it's really what you're trading. You know what I mean? And it's like, listen, if you're saying I want to set my kid up for success and you understand that part of the way that you're setting him up for success is I'm teaching him that we don't have to borrow money. We don't need a credit score. We give ourselves credit that we can earn the money we need. We can manage the money we have in order to have the lifestyle that

we feel we deserve. And I feel like that's the teaching that's behind this. And when you make that choice and draw that line in the sand, you're also saying to yourself, yes, you may have to jump through a few more hoops because the fact is our society is not set up for, it doesn't favor the people who choose to not use credit. It favors the people who do use credit. So there is that piece of this that you just have to accept and go, listen, I'm willing to take a couple of hits sometimes in order to maintain my peace.

And I think that that's what we need to be teaching our kids is that give yourself credit. Don't depend on the credit score. Ooh, I like that. Yeah, that's true. And getting that affordable used car and have your kid work part-time to afford the insurance. These are good skills for this kid to learn. And then the insurance will go

down over time as the kid gets older. So I'm going to just suck it up and do all those things I mentioned. And we'll put the link in the show notes, James, the producer, can we do that? To the insurance score article that will give you all those tips I mentioned and give you a deeper dive on that. Love it. All right. Nick is up next in Providence, Rhode Island. Nick, welcome to the Ramsey Show. Hey, guys. Thanks for having me. Sure. Hey, so I was hoping for some advice, a little guidance. My wife and I, we have two young kids under four years old, a four and a two-year-old, just purchased our forever home

in Connecticut. We previously owned, I had two rental properties previous to that, holding onto one and we sold the one that we were living in half and then purchased our new house. I have some money in savings and I have an opportunity that if I were to sell my other rental property that I do have debt on, I'd be able to pay off my primary residence. I'm kind of going back and forth whether it's a good idea or not. I'm just trying to figure it out. I'm kind of torn a little bit, whether to do it or whether to keep the money and invest it and maybe get some more rental properties. But I would have to take on more debt, obviously, which I know, you know, I've been listening to you guys for a few months now. And it's, you know, not really the path, you know, that suggested.

Look, what do you owe on your forever home? 405. 405. And if you sold the rental, what would it bring? So the rentals, I could sell it for 550 and I owe 248. So I'd probably take home after taxes right around 260. So it wouldn't be enough to actually, it wouldn't be enough to fully pay off your forever home. It would just make a big dent. Is that what you're saying? Yeah. So I have just under 300,000 on the bank as well, like liquid cash. Oh, hey, I like it. That's from our other rental property that we had when we sold that.

Got it. We sold it in half, so we had to pay taxes on half when we sold it. How much money do you guys make a year? So we net around $12,000 a month. My wife's embarrassed when we moved into a new house. She actually ended up only going to two days a week. And then I work, I make around $155 and she makes around $60 now. Amazing. Just curious, the rental, when you rent it, how much does it bring? Like,

what do you profit from it every month? Yeah. Yep. So I actually just handed it over to a property management company. It was cash flowing around $2,600 a month. So that's after, you know, mortgage, after what it brings in, I cleared $2,500. Now it's, you know, just over $2,000. Okay. And then I also, I'm just curious, your forever home, what's the mortgage payment on it? Yeah. So it's a high interest rate at $3,700 right now. Listen, I'm, here's what, here's the numbers i see i'm looking i'm like okay listen two thousand dollars of cash flow that's great but if you paid off your if you sold this rental paid off your home mortgage now you've got the 3700 or a portion of that because obviously you know you've got to

keep paying your taxes and whatnot you get that back in your pocket and now you're turning around and you're restacking your savings essentially you, you're either adding it back to your house is paid off so you can invest as much as you want. Like you can literally turn around and invest that money. And I feel like that's the move. That's a lot of money, George. And the other option is you guys make great money. If you could stack up 100 grand extra, you could just pay off your primary residence from the savings and keep the rental and then attack that one next. So either way, I like that plan, but let's get aggressive about

making one of these moves happen. I don't think you'll regret selling the rental and having a paid four house because you're going to be able to get another rental lickety split with that kind of income and no payments, my man. This is The Ramsey Show. Welcome back to The Ramsey Show. I'm George Camel, joined by Jade Warshaw. This is your show. Give us a call at 888-825-5225. We'll talk about your life and your money.

Well, Jade, producer James slipped this on the desk, and it's a fantastic, fun article from Yahoo. People are revealing the everyday items they had to stop buying because they became too expensive that sounds like a buzzfeed headline yeah like buzzfeed people they have no character limit for these headlines goodness christ that's funny listen yesterday's prices are not today's prices we all know that and we all feel that so let's read a few off and see if they're relatable here number one concert tickets it's like everyday things people stop buying because they became too expensive. I didn't go see Beyonce.

Everybody else was renaissancing and I was at home. I felt the same way with Taylor Swift. Everyone was Taylor Swifting. I'm like, y'all got some money. Bro, folks were cashing out their 401ks to get these tickets. I just can't stop. What's the most expensive concert you've paid for recently one ticket okay thank you george for teeing this up i saw you two in

the sphere oh my goodness and i was deeply disappointed can you tell us how much those cost because no one has told me um is it like a thousand dollars it was everything all in for both of us it was about a thousand dollars so 500 bucks a ticket yeah and if you spent double that you could get even better seats and i just it it did not a thousand dollar experience for you here's the thing it made it worth it because it was my husband's 40th but on another occasion i would have been like i want my money back oh gosh and just imagine how many people put that experience on the credit card. Oh, wait.

Because how many people are like, you're budgeting for this trip. You know exactly what it's going to cost. You've got, you're paying for everything in cash. They've done studies, George, that say, you know, we already know that when you put stuff on credit, you spend more because you don't feel it. They've done studies that said one of the purchases that you'll spend the highest percentage more on on up to 100 more is concert tickets that makes sense people will literally pay double the price when

they put it on their car and i think the younger generations are willing to fork over more for experiences yes and then they get the older crowds the gen xers and the boomers with the nostalgia yeah now everyone's got i mean elton John's on his 90th final reunion tour. I'm like, goodness gracious, man. Yeah, but those tickets aren't as expensive. And that's what I say. Go watch the old heads perform. Like, I go see Kenny Loggins.

You know what I'm saying? Like, I go see these old acts because the tickets are like $70. Still fairly reasonable. Oh, my goodness. Yeah. Okay, that's a good one. Next up, we've got bowling. Oh.

This person said, a few years ago, my girlfriend and I went bowling at a local place. It was maybe 60 bucks for shoe rental and two hours of bowling for two people. Recently, we checked prices online. Same rental and playing time is $150. Whoa. For bowling? I mean, that thing better come with like a massage while I sit and wait for my turn for 150 bucks.

I know that's right. That's crazy. What's next she says ads and okay ads being added to amazon prime and netflix was a breaking point for me oh what does that mean the ads i guess it didn't make it more expensive but it's just a frustrating piece there that you're paying that much for something that still has ads well my thing is amazon prime and netflix the price has gone up like hulu too those like all those little subscription like in my mind streaming services like i don't know five to eight dollars

now everything's like 1999 if you want an hd otherwise we're going to show it in black and white yeah and four by three in 720 everyone went went into the teens they went from the single digits to the teens for sure oh this one's relatable everyday items that people stopped buying because they became too expensive airbnb oh anytime i look on airbnb and i see all these fees like it's 99 a night but there's a 400 cleaning fee listen clean it i spend what you need to get it clean because i need to know it's clean i'm just saying i usually the only time I stay in an Airbnb if it's with a big group and we want to do something fun and local and we're hanging out. We did that in Arizona.

It was fun. But otherwise I'm just staying in a hotel. I'm sorry. You know what? I stay in a hotel because I feel like there's a corporate juggernaut supporting the fact that my hotel room needs to be cleaned properly. I've seen some Airbnb horror stores. Okay.

So there's part of me that's like they're like hey could you go ahead and start the laundry for me and while you're at it there's some weeds that need to be pulled from the back i'm like listen i'm not here to do your chores please yeah i'm paying you for a service okay no way oh look ordering pizza is getting too expensive this person says i'll still order for pickup sometimes if there's a good deal but no more just picking up the phone and randomly ordering a pizza that's my my toxic trait is i'm always like i am picking up the pizza i ain't paying for delivery and my wife and friends like dude just pay for the i'm like it's 4.99 for the delivery fee then you got to tip the pizza person who delivered it are we talking about just basic like dominoes or pizza hut or are we talking

about like uber eats delivering a specialty pizza i think this is more the whatever your casual local pizza place is whether it's big chain or not i don't trust uber eats personally and it's not to down because i know a lot of people do that as a side hustle you know they're grabbing a fry well and they're grabbing a fry for sure that driver is driver is grabbing a fry. You mean to tell me if I go pick up your order at McDonald's and that fresh, hot McDonald's french fry

is sitting right there in my cup holder, I'm not going to reach over and just grab a couple? I have trust issues. Me too. Listen, though, we've got a lot of people

doing side hustles, getting out of debt, driving to wreaths. I'm not mad at them. Keep doing it. Our crew, they're not doing that nasty stuff. No, our people do it

right. If you're on this thing for the right reason, gazelle intensity, you're not doing that nasty stuff so our people do it right if you're out of the if you're on this thing for the right reason gazelle intensity you're not that person but i just know that happens out there yeah no keep support your local listen if you have the money support your local uber eats driver because they're trying to get out of debt and and while you're at it pay for my order too i like that all right next thing people stop buying because they came became too expensive is new clothes. Someone said, tried to downgrade from the mall to Amazon, but that stuff's mostly

trash. Listen. Well, Rachel Cruz's feelings are hurt. She loves shopping for clothes on Amazon. You have to know how to shift through the trash, though, and I don't know how. They said, I thrift now. It's not as bad as I anticipated. A lot of the stuff is discarded with tags. I even found a sweater that I'd wanted years ago. That's good. Thrifting is on point. Listen. Reduce, reuse point listen reduce reuse recycle there you go this girl said i love this she said my car

i just said screw it i'll work from home and get me a bike wow come on girl i know that's right that's good for the body too you know getting your workout in it's good for the planet i like it but yeah cars especially if you live in a city, you know, obviously some places you can't just get rid of your car and bike around. I understand. Some climates, some locations. But a lot of people that live in an area with public transportation, I'm from Boston. You don't need a car living in Boston.

You can get around to most places with the T, as we call it. But let's talk about just saving money on gas because I just feel like even if you don't live in an area that you can get from most place to place, like you might have to drive your car to get to work, but you might, Publix is around the corner. You might be able to walk to get your groceries or ride your bike to get your groceries. I think we need to start considering, you know, being a little bit more creative with our transport. That's good. Last one on the list, eating out. They said not worth the price and the food quality is not there anymore. And there are smaller portions for higher prices.

I agree with that. Very true. That feels like a complaint I would leave. 100%. And listen, I am not buying a cocktail at these restaurants. If it's a very nice, fancy restaurant and I know that they craft very nice cocktails, I'll buy one. But if we're going to Applebee's, which I rarely, you know, listen, I'm not going to

Applebee's, but I'm just saying don't buy a cocktail of applebee's yeah when jade is going to what red lobster and getting a lobster why is it gotta be red lobster george cheddar bay biscuits you're dipping it in the lobsterita okay that's disgusting no that's a good one though i'm actually going out to eat tonight with my wife it's our it's our date night and we're going to a nice, like high-end sushi place. And I'm already like, I'm getting ready for this bill, Jade. Listen, George, I'm still on Red Lobster. I'm still on Red Lobster.

And if you invite me, I'm going every time. I'm just telling you right now. You can't pass up the Cheddar Bay biscuits. Hashtag not sponsored. But it's true. Like, let's call out that inflation has made things more expensive. We're not here to tell you that you're making it up. But but also don't over-inflate it and get all big and emotional. Just don't buy it anymore. Half the stuff that we're upset about with inflation are not,

they're luxuries, Jade. I know. I know. Outside of rent and gas and normal basics like groceries, all these still exist. I was in the other day and i was like oh food's not that bad like you can get it yeah up a buggy for 100 bucks yeah for me it's the tipping fatigue like i feel like some of the reason i've pulled back on certain things is i'm just the tipping fatigue is what got me it's like all right listen i would usually pop in and maybe get a coffee but i'm tired of dealing with the guilt of not tipping so it's like i'll just save the money on the tip and the coffee. Like, I feel like it's that combination of inflation plus the dialed up tipping. Yes, and for me, it's fees.

Everything's got fee. I'm calling it fee-teague. Fee-teague. I like it. Hey, on the tipping thing, normally, you know, they flip the screen around or someone else asks you, like, do you want to tip your, you know, barter?

Yeah. I've had people recently ask me, do you want to tip like me? If I could verbally ask, that's the most awkward. I would tip you, James. I would too. Worth every dime. Not today, but one day we'll tip you.

Listen, I'm all for generosity, but not when it's a requirement and it's forced. That's right. Hey, good stuff. This is The Ramsey Show. Our scripture of the day, Ephesians 6, 10, and 11. Be strong in the Lord and his mighty power. Put on the full armor of God so that you can take your stand against the devil's schemes. Thomas Sowell said, Much of the social history of the Western world over the past three decades

has involved replacing what worked with what sounded good. Ooh, that'll make you think. That'll burn some brain calories right there. That'll make you stroke your beard, yes. Good stuff. I got one. It's not much, but it's there. All right.

This is The Ramsey Show. I'm George Camel, joined by Jade Warshaw. David is up next in Chicago, Illinois. David, welcome to the show. Thanks for taking my call. How are you guys doing today? We're doing great. How can we help? Well, I am kind of planning out the next phase of my life. I'm almost 54 years old and looking at retirement in the next six, eight years. And the plan is to eventually sell all of the assets

and live on a sailboat and sail the Caribbean for about six months out of the year. When hurricane season hits, you put it on the shore and live up in a house up in northern Wisconsin. Wow. I guess I'm just looking for affirmation that I can do it, I can afford it, and then the best plan of attack to finalize up the savings and so forth. Very cool. What a cool plan. Yeah. That's fun.

All right. So are you single? I am. I'm happily divorced. No kids. Okay. So you're ready. This is going to be a solo adventure for you.

No, actually, the girlfriend is in on the adventure. Okay. She is going to take care of the house up wherever we decide to leave uh live the summer months at and i figure i'll probably check out long before she does and then that way that's she's taking care of on her end because she's done that and i'm taking care of the boat and everything on my end wow when you say sell the assets what does that entail um currently have about 10 cars, an airplane, my house is paid for, and then as far as what I've got in money market, 401ks and type stuff. Wow. Obviously, the cars will go away, the airplane will go away.

I'm going to assume your net worth is in excess of $5 million. Oh, God, no. What is it? Actually, just added things up. I'm sitting right about 1.2 okay um so i mean what are these 10 cars for you just collect them um yeah i mean i've had them for i built them up to collection over the years uh two of them are gifts that are going to be gifted to my nephews when when they each turn 16 um so really i guess i only have eight and there's seven days in a week and so you got to have a

spare I guess are they all paid for like is all is there debt on any of this no everything's paid for the cars the values on the cars total about 530,000 and that's insured value fiber classics muscle cars type stuff and then and you're willing to give all of this up for the dream of the sailboat? Well, how much does a sailboat cost? I'm looking between $225 to $250 to spend on a boat. Okay. Is that used? Yeah, definitely by use. And the thought process is actually to try to acquire one in the next 12 to 18 months. That way I've got time to

do anything that needs to be done to it so that when we're ready to go, it goes with us and it's ready to go. And then that way it's also paid for. So the question is though, my question is $250,000 great. Why do you have to sell everything to get that? Because, you know, you said yourself 530 is in the cars alone. I don't know what the airplane is worth. And then you've got this and either, and maybe use it a few times a year, maybe put it out on charter a couple of times a year, but then so that in the next seven, eight, nine years, whenever I decide to stop flying for a living, that I can just sell everything and move on to the next adventure. And then that money, you just drop into some sort of investment accounts? Exactly. Got it. How much do you make?

A little over $200. Wonderful. Yeah. I fly corporate jets for a living and base is about $190 between extra stuff. And if I do any contract work for a couple thousand a day, just call it roughly $200. Okay. And just to clarify the girlfriend, she would purchase in her name, the house in Wisconsin, or what's the plan for that? Because I know you said she'd take care of it, but I want to know more. That's her plan. That's the plan is that she would acquire, she lives separately in her own house now. So she would eventually either take out a mortgage or she would acquire the house that we would live in for six months out of the year. Six months out of the year, we'd live on a sailboat and sail the Caribbean. Okay.

And then obviously that way, you know, that house, again, she's going to live longer than I will. But she doesn't have this house in Northern Wisconsin yet, or does she? She'd sell her house to get it. Right. She would sell her house to get it and and uh she does okay financially um not great but she has a nice pension setup so she's in good shape there what's the would you pay rent when you're there for six months out of the year to help her cover the mortgage how does this work no you're just living together like she's she covers it he does the boat like you'll cover the boat six months she covers the house six months yeah is that the idea now is there any plan to get married or no probably not okay you're just

living your life okay yeah we're i mean we're both divorced uh her kids are done and grown and uh yeah and you're keeping the money separate like it sounds like everything is financially very separate okay i mean obviously i make more than she does um so i carry you know the majority of the burden when we go out or vacation type stuff now. Yeah, but that's, you're the boyfriend. So, and you don't mind doing that, it sounds like. No, no, not at all. Okay. All right. Nothing sounds way off here. My big question is, are you going to be able to, once you officially retire, you're not bringing in more income, will your assets generate enough

income to cover all of your expenses? I would hope so. I've always, you know, 25 years ago, I was gifted the book, The Millionaire Next Door, obviously read that and kind of lived by that most of my life. I try to live well below my means. But yeah, I guess in my mind, I want to have a couple hundred more tucked away before I make this ultimate move. What's in your 401k? Like all of your retirement accounts combined. That's what I was going to ask. My money market account has about 120 in it. My checking account is about 40. I've got two 401ks, about 145. Currently, 20% of my salary goes into my 401ks. I have the Roth that I have that I just opened up in the last few weeks.

That'll be topped out here in a couple of weeks. You have catch-up contributions as well, so that helps you. Yeah, and I really don't spend a lot of money. Half of my monthly, I'm out on the road flying. And so all of my expenses are there. My per diem is covered. My per diem on the road actually covers what I eat the rest of the month. So like 450 all in and various retirement accounts. Does that sound about right? Well, you've got a house that's worth about 300. Well, just the retirement accounts.

Because I'm looking at what is actually creating income right now. The only thing that's doing that is the $145 in the 401k and some in the Roth. Correct. So if I'm in your shoes and you really want to live this dream, I would liquidate now, take that money, put it into investments, max out all of your tax advantage accounts, put the rest in a taxable brokerage into index funds, and let that money grow for the next six to eight years. There's also the 120 that's in a money market that's at 5.65 APR.

And I still, I think, okay, and you've got the 40,000 in checking. I think that you've got a lot of money in a lot of places. It would do you well to kind of get it organized and work with a professional if you're not already. When I look at this just at a glance, I look at it and I go, okay, he's got $40,000 in checking. I'm moving that to a high yield savings and I'm going to call that just my emergency fund. And then I'm going to take this $120,000 that's in money markets. I'm going to invest that probably into some kind of brokerage account, again, working with a professional. Then I thought I heard you said you had $145,000 in retirement and another $140,000 or so in another type of retirement fund. That's good. And so I think it's just kind of consolidating this. And to George's point, whatever you can liquidate now, that's not a necessity that you're like, listen, I have it because I have it. But if you really

want to make that money work for you, I would work with an investment professional and get it invested so that when the time comes, you want to make sure that you can live off make that money work for you, I would work with an investment professional and get it invested so that when the time comes, you want to make sure that you can live off of that nest egg. You can keep, maintain the lifestyle you have and greater without really touching, you know, the nest egg if you don't want to, so that you know that you can go, you know, as long as possible.

So that's what I'm looking at. And I would, I mean, just liquidating the cars alone, if you went from 54 to 62, you took all that money and put it in an investment account, making 10%, you'd have $1.1 million at 62 when you're ready to retire. So just something to think about to have assets that are actually generating income instead of just a bunch of toys. But I'm hoping this dream works out, man. It sounds awesome. Call us from the sailboat one day. That'd be fun. That puts this hour of the Ramsey Show in the books. My thanks to Jade Warshaw, my co-host, all the folks in the booth keeping the show afloat,

and you, America. We'll be back before you next time.