The Ramsey Show - App - Finding a Well-Paid Side-Hustle (Hour 3)

Episode Date: April 25, 2023

Dave Ramsey & Dr. John Delony answer your questions and discuss: Preparing for an upcoming settlement, "Should we use 529 to pay for private school or college?" "How can I find a side hustle that pays well?" "Should we buy a term life insurance that converts to whole life?" Cashing out stocks to pay off student loans, "We're struggling to feel like will we never get a house" Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Want a plan for your money? Find out where to start: https://bit.ly/3cEP4n6 Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6 Interested in advertising on The Ramsey Show? https://ter.li/s64ye3 Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

Live from the headquarters of Ramsey Solutions, it's the 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. We help people build wealth, do work that they love, and create actual amazing relationships. Open phones this hour as we talk about your life and your money. The phone number is 888-825-5225. My co-host today, Dr. John Deloney, Ramsey Personality, number one best-selling book, and we're number one best-selling book and land uh we're number one best-selling author of the number one best-selling book i'll get that spit out correctly here in a second you talk and you call in talk

we'll help you the phone number is 888-825-5225 alan is in louisville kentucky hi alan how are you hi dave and john i'm doing better every day what an honor to talk to both of you. You too, sir. How can we help? Well, I'll be quick. I'm not here to waste anybody's time. I'll give you the context and then the question. I'm 24, married, got one child, make $60,000 a year in union construction.

Right now, however, I'm on total temporary disability. Roughly three months ago, I was buried in a building collapse and was buried totally alive due to the work of the co-workers and firefighters that got me out within two hours and saved my legs within five minutes. So I'm back home. I'm out of the wheelchair. I'm in therapy. I still got probably another four weeks until I start doing some light duty stuff. Broke leg and shoulder and had a small brain bleed, was on ventilator for a little bit, some other stuff.

But the questions I've got for you, I've retained lawyers for other stuff, but it kind of revolves around if there's anything ruled negligent, which is kind of what you're thinking, I'm sure. As far as the settlement-wise, you know, how long do I wait? I'm renting right now. You know, I don't have fancy cars. I got what I need.

I was in Baby Step 2. Right now I've got about $5,000 in savings, and I've got $2,500 in past medical debt. Obviously, everything's being taken care of as far as I'm on disability and then everything's being covered by workers comp just those main two questions is just you know how long do I wait if there's a settlement and then do I pay off that $2,500 that I've gotten past medical debt I was in the baby step two I've been through FPU I've used your ELPs for everything from my taxes to my insurance. I've got disability insurance. I felt like, you know, I'm done. You've been through hell.

You've been through hell. It's been interesting. That was an amazing adventure that you've been on, man. Right. How long ago was the accident? It was the end of February, so it's been just over three months. Wow. I've been walking for about two weeks.

So you're up walking now. Yes, yep, up walking. I've got surgery coming up here in two or three days. They're going to take a screw out of my knee that's kind of messing with my walking. That should get a little better, but that should be the end of that. You're a tough motor scooter. How are you managing the pain? Well, we're off of Percococet so we're just on tylenol

now so we're never going back right that's that's the plan yeah no no no no we're never going back we're never going back right correct correct there you go percocet makes buildings fly yeah yeah yeah the percocet before that ketamine's a little hard on you and dilaudid and all that yes yes yes yes, yes, yes. Yeah, you got messed up, dude. Sorry, man. I'm glad you're lucky, man. I'm glad your little girl's got her daddy with her. Right.

So, yeah, it's just I couldn't find anybody on YouTube that had the scenario that I did outside of maybe inheritance questions, but I'm just looking for some counsel. It's early to have this discussion because right now I'm just happy you're up walking around. I'm out of breath listening to you. Yeah, true. But, you know, a year from today, two years from today, five years from today, have you thought that far out on what you're going to be doing for a living? Well, I continued.

As far as the relationship with the employers, it's still been great. They're grateful for everything. It's still under investigation to exactly what happened. Was it their building that fell in? We're a general contractor, and I'm

a union carpenter. We're working on a project that's about 30-some buildings, a big campus, about $800 million. The company itself runs about 500 guys in the field. That you work for. So if there is negligence, it's the company you work for. At this point, the lawyers, it's third party.

You can't sue your own employer. So it's kind of looking like excavators. I work in heavy concrete as far as foundation-wise. And what seems to have happened is we came in the same day. They dug out dirt to do some foundation work, and then the foundation blew out and buried me. So that's as far as that stands. So you think long-term with your injury, you'll recover enough to go back to doing your job? I do.

The doctor already said, you know, I tore three rotator cuffs in the bicep, so overhead stuff's probably not really going to be in there. But I love the industry. I love working with people. You know, it's not in my plans to move away from this type of industry, if that kind of answers the question. And so you'll be back to making an income similar to you used to make? Yeah.

And workers' comp and disability will cover you until then? Yeah, workers' comp, they're getting to me within $100 of my paycheck where I was. Okay, so mathematically, if I'm understanding now, and here's what I'm trying to get my head around. Mathematically, if I'm understanding, you go from disability workers comp to back to working again over some period of time, and you're going to have the same income as you had before the accident. Everything is going to be running right along. So any settlement that you get would be to cover any more surgeries that you have to do or any other injuries that anything you have to do regarding the injury or um it's just gravy you don't really need the money your life is going to go on like it was before the accident and the money that you get mathematically speaking will be

just to uh uh will just cause you to have a gravy on biscuit, to have a little extra, right? Right. So my point is, how long do you wait for money that you didn't need anyway? As long as you need to wait to get the maximum amount. And so your attorneys that are advising you on this negligence lawsuit can tell you what the timeline looks like and if it's four years it really doesn't matter because you're going to have the same income anyway and you're going to be moving right along am i missing something right i was just kind of thinking you know if it's something crazy like a million dollars you know

is there a timeline that you wait no let that kind of soak in no or it doesn't really matter it's already that timeline's already been used up by then no you you're you're gonna you're gonna have a long timeline they don't give up a million dollars easy years they don't give up a million dollars easy it's gonna take a while and remember this and you don't have to have it to eat yeah and the idea of a settlement yeah the idea of a settlement is to make you whole. It's not a scratch-off ticket. You didn't hit a lottery ticket. Right.

You might get a million dollars, but you just said it in passing. This is going to shave some of your life off, right? This is going to affect you 20 years from now with a hip replacement or 30 years with a knee replacement. You want to bank some of that stuff and be smart about it. Don't think, oh, cool, we can buy Ferraris now, right? Or now we can buy a house with it. Yeah. Not even.

So I would continue your life as if you weren't getting a settlement. And then if you get one, it's just extra money. That's my point. And then the timeline doesn't matter as much. You're not waiting to buy a house on this settlement. You're not waiting to do something on this settlement because you're not waiting on the settlement. You're moving on with your life.

Man, I'm sorry for what you've been through. I'm sorry, Tim. Glad you're safe. Terrible. Dr. John Deloney, Ramsey Personality, is my co-host today. Thank you for joining us, America. It is a free call at 888-825-5225. Paying off debt smart, saving and investing is smart.

Being outrageously generous is smart. There's one key to winning with money that people overlook, and that's protecting your finances from emergencies. And this is where the right kinds of insurance come in and that's smart there are 10 kinds of insurance that might be smart for you we've built a free tool called the coverage check up to show you which types are smart which ones to add drop or adjust drop the dumb ones keep the smart ones we'll show you how it works and it's all free and it's fast takes about five minutes you need to go to ramsey solutions.com slash

checkup ramsey solutions.com slash checkup don't let an emergency sneak up on you protect your family now open phones here at 888-825-5225 peter is with us in columbus ohio hi peter welcome to the ramsey show hey good afternoon good afternoon, gentlemen. Thanks for the time today. Sure. How can we help? A question for you. So my wife and I are on baby step four, five, and six. We recently bought our first house as a family. We put down about 300, so we only have about 100 left on it. We have 30,000 in a 529, and we make household income about 110 a year. We currently pay about 12,000 a year in daycare, and we're looking at sending our son to private school, and we figured tuition is probably going to be roughly what we pay in daycare today. Kicker is we're older

parents. I'm 50. My wife's in her early 40s and we have a three-year-old son. So question is, would it be wise to draw down a portion of that 529 to pay for a portion of the private school tuition, which would allow us to pay down our mortgage faster, with the thought being that having a paid-off house would make college easier to cash flow later. I wouldn't call it dumb. I'm struggling with it from a timing standpoint because I'm thinking of all the,

I always think of the downsides because I always get to deal with people when their plan didn't work because life blew up, right? And so how could life blow up and mess up this plan? Okay, you're an older parent. Let's say Ford Jr. gets to college, you die. Well, your plan didn't work because you're not there to cash flow college. You with me?

Right. That bothers me because we drained his 529 so that he could go to private Christian kindergarten, and we traded that for college. Yeah, not making that trade um i'm gonna cash flow it or i'm not doing it cash flow the the private school in the short term yeah okay yeah because i need that i need that nest egg there to back him up if you're not there to back him up yeah that makes sense we were just saying the other night when we were talking about it, it would make this decision a lot easier if we knew what the future brought. Yeah, you get that one figured out.

Let me know. I'll help you franchise it. Yeah, I think Michael J. Fox figured that out for you. He's got three installments you can watch. Oh, great. Back to the future. Yeah, that one. Yeah.

Careful. Yeah, okay. I didn't know what you're talking about there for a second appreciate it yeah back to the back to the future there yeah um i tell you what dave i don't want to go here you can just say let's move on i get i get more blown up on social media like the people who follow me are so kind i get blown up on one issue one no two travel sports and the other one is i send my kids to public school and well i can help you with that i'll just tell you i'll take the heat yeah it's a all three ramses went to public schools yeah and none of the three ramses did travel sports because dan Daniel was pretty good at ice hockey, but he wasn't going to be playing in the NHL. So I'm not dropping 15 grand a year for the kid to play travel sports and me be out of town every weekend.

He ain't going to make it. But I'm going back to what this guy was talking about. He's talking about literally mortgaging his future to get my kids out of this school so they can come to this school well he's going to send him to the private christian school that was not an issue it was just how to pay for it was the only question yeah and so uh now then he didn't ask if we thought it was good idea you know that wasn't the point but yeah there's uh um you know there's when someone wants to go to a private Christian school, there is usually one of two or three reasons. Yeah. One is they live in a neighborhood where the public schools aren't,

they don't perceive them as being safe. Yeah. Okay. And in other words, rough, rough area. Yeah. Okay. Two is they want to ensure that the teaching is done from a Christian worldview, not with all the wackadoodle that truthfully a lot of the teachers unions and other things are put into the schools. Now there's wackadoodle in the schools and they don't want their kids in there.

And like I was watching this guy was cracking up on the post the other day. He said, yeah, he had homeschool kids. And he's like, people tell my kids, tell me, what about proper, you know, you have homeschool children. They're not going to be properly socialized. You want socialized by drag queens? I mean, really? Thank you.

No, thank you. I don't want to be socialized by drag queens. So homeschool is a really good idea. Yeah. It's really a good point, actually. So, but the idea is, is well what's the third one so safety um religion yeah and academics okay sometimes the academics are better yeah they want to go to a it's not always a private christian school but a private school for better for better academics and so like in our neighborhood

we have uh in our neighborhood here i won't name it we have a private school for better academics. And so, like in our neighborhood, we have, in our neighborhood here, I won't name it, we have a private school that's well-known. It does have a Christian underpinning or background, but it also walks around claiming to have better academics. Gotcha. But the graduation from college rate is exactly the same as the public school that's a mile and a half down the road. Right, exactly.

And it's like $30,000 a year yeah you know per kit you know so uh you just gotta decide is it worth it like you decide if you're gonna go to a college yeah that's more expensive what what is the value proposition in that case and you know i think there is some something to be said uh and the more wackadoodle the world gets on just worldview of the teaching staff, it's that, you know, I don't want wackadoodle talk to my grandkids, okay? Now, we live in a weird bubble where our public schools in this county are unusually, they're number one in the state. They're incredible, yeah. They're number one in the state.

And the people in our general area here share our values. Yeah. By and large. There's a few wackadoodles out there but i mean most of the people are like normal humans they're not aliens teaching in the classroom uh like you read about on sure you know in the news and everything but uh so you know we've we're a little bit spoiled yeah in that regard so where hank goes or where my grandkids go to public school yeah all of my grandkids go to public school, all of my grandkids

go to public school. But that public school is better than a whole lot of private schools in a whole lot of ways. Right, right. But it's unusual. Not all public

you can say that about. So anyway, you just got to look at the situation. But yeah, I get blown up on that too. Because this idea that, I mean,

if you've got extra money and you want to spend i mean rachel did uh competition cheerleading sure two years yeah and we paid some money for her to go to the gymnast thing and learn how to do flips off somebody's shoulders or whatever it was she did and um and then i think we went to one competition in atlanta or something where she flipped or whatever. But it's, you know, today as a 34-year-old mom and best-selling author of three books, has not done a single flip lately. So I'm just saying. It's not come up again, you know.

So that's, but it's part of her childhood. There's a weird thing that goes with that travel sports thing. And I think it's the same button you're pushing with a private school thing. Well, I had a unique perspective of dealing with students whose parents outsourced. They hid their kids from these conversations, never had them, never had them. And then they show up in college and the world's sideways. And so there's something about, I love the idea of my kids hearing things and being challenged and then coming home to me, not to their 19-year-old roommate, right? About how life works.

There's just people with wackadoo ideas out there, man. Is God real? That's exactly right. Let's have some conversations at home about this, by the way. I'm not outsourcing my children's spirituality, but that's another conversation. You betcha. This is The Ramsey Show. Dr. John Deloney, Ramsey personality,

number one best-selling author and host of The Dr. John Deloney Show, is my co-host today. Open phones at 888-825-5225. Hey, if you're new to this whole Ramsey process and you hear us using this lingo on here that kind of feels like it's inside baseball, like you have to know all the stuff to be able to do the stuff, it's really not that complicated. But, yeah, we kind of have developed our own tribe speak, so to speak. And if you want to know a little bit more, and here's what you can do. You want to dig deeper into the Ramsey baby steps as an example, go to ramseysolutions.com, click on the Get Started button, and we'll help you figure out the next best step for

your financial journey based on exactly where you are today. It's completely free. Click Get Started, and we'll walk you through the whole process at Ramsey solutions.com get started. It doesn't cost a thing and it'll kind of get you, you know, into the lingo and you'll get, you know, you'll get caught up here. Cause sometimes listening to this show is like, what are they talking about? Well, I mean, you have to be careful. We, we, we overdo that sometimes, but this will at least get you moving in the right direction.

Gabriel is with us in Fort Lauderdale. Hi, Gabriel. Welcome to the Ramsey Show. Hey, Dave. Hey, John. How are you doing today? Better than we deserve. What's up?

So long story short, I'm working my debt snowball. I'm in baby step two right now, and I'm returning to a job that I love so much in school security, but unfortunately, I'm expecting a minor pay cut. So my question to you is, how do I efficiently, effectively budget my money and find a side hustle that pays a decent amount of money for me to be able to kind of survive down here in South Florida? Why in the world are they cutting the pay of school security officers yeah i am not sure why i was working in the charter school segment which is higher paying but unfortunately they always drop the contract to give it to an agency for a cheaper amount so i just went ahead and returned to the public school board in my local county have you thought

about um just going to the academy? I don't know a police department in the country that's not looking for people. I did. I applied over the summer when I found out that they dropped my contract and I was in the process of doing it when a new opportunity with training dogs came around and I thought it'd be kind of unique and different. So I wanted to explore it, but after about six months of doing it it's uh it's not my thing so i want to return back to public safety so can you can you call back the recruiting officer and get back involved yeah i absolutely could it's just that working directly in the school is kind of something that interests me a little bit more than you know being out on the road as a police officer. They're completely different jobs, but similar in regards to public service.

Yeah, I get that. I mean, I've had school police departments reporting up through me at various universities. What I'm saying is I get that those are different jobs. I'm trying to figure out, is there a similar enough-ish job that doesn't require you to take cuts in pay? In an economy where people are dying to hire people. I mean, people are paying unbelievable money for all kinds of positions out there right now. And so, you know, I don't want you to be as stuck as you feel like you are. I think you could find similar gratification if you adjusted three clicks to the left or right and moved into something that paid double what you're being paid.

I appreciate you want to sacrifice and be there for the kids. That's awesome. But they're making it untenable for you. Let me paint you this picture. My dad was a police officer growing up and he mowed lawns on the weekend and he cleaned the church. He was the janitor for a season

and he would go help another. So that's the life. That's the choice. That's a tough road to hoe, especially with so many jobs out there. And dude, it's in my blood. I love it. I love everything about it.

That's my community. It's tough. And i just can't wrap my i'm having trouble even wrapping my head around how they would drop the the contract right now it's just madness it's just madness um in a season when we need to be paying school security officers more to get more people and more qualified applicants to drop it is madness but that's where we find ourselves it is what it is you got to deal with the reality um i don't know man so yeah i think that in that world of serving and protecting there's a lot of things that fall in that bucket that would scratch the itch uh that you could either add to this position as an additional thing or make a change in that direction, and either one would help you with your income side of the equation. You can work the door at a restaurant or a club at night.

My dad used to work concerts on the weekends and in the evenings for extra money, baseball games, I mean, all kinds of side hustle jobs here and there if that's what you want to do. That are security-oriented. That's right. My guess is there's a ton of that out there. kinds of side hustle jobs here and there, if that's what you want to do. That are security oriented. That's right. Yeah. Yeah. And there's, my guess is there's a ton of that out there. You just get to poke around in that world, get in a couple of those.

Little circles. Circles of people that line you up on it. John is with us. John is in Concord, New Hampshire. Hi, John. Welcome to the Ramsey Show. Hi, Dave and John. How are you guys?

Great, man. What's up well uh my wife and i are in baby step six and we're kind of late to the game with the life insurance thing and i've been presented an option where there is a term policy that can convert into whole life as an investment vehicle it was presented to us and I really don't know a lot about it. Oh, okay. I'm sorry. We'll have the house paid off here in the next few years. So if we did a short term and then started converting is what this person was telling us, we could use it as an investment vehicle and they pay dividends to us and i don't understand that i just didn't know what your opinion was okay so this is uh

what northwestern mutual new york life new york life yes yeah okay because they're about the only one selling that crap anymore it's one of the worst financial products on the planet not only is the term insurance that they price to you way too expensive, but then they're trying to convert you into an absolute screw job, which is an investment inside of a life insurance policy. You are much better off just to buy term life insurance, do your investing anywhere except New York Life or Northwestern Mutual. Ugh, gross. Wow.

Yeah, horrible, horrible. Remember that time you calledave to ask for his opinion yeah and that and he wasn't clear um so now let me back up let me back up and tell you the detail okay you want to hear the detail on i'll give it to you okay couple things one is there's two types of life insurance companies that's how i knew who this was okay there's mutual or stock. Stock companies are owned by the stockholders. Mutual companies are owned by the policyholders. So when you buy a policy with New York Life, you're one of the owners of New York Life. Okay.

You with me? The same thing with State Farm. They're a mutual company. Okay? Now, here's the way dividends work in life insurance. Follow me here. You're the owner of the company. So if you own a company and it makes a profit and they distribute that profit to the owners of the company that's called a dividend distribution

does that make sense yes so if you opened up a company or you bought stock in home depot and home depot made a profit they would distribute that profit that's called a dividend all right so in a mutual company they are talking about distributing the profits of the company that you own to you. You follow me? That's your dividends. You with me so far? I am. Okay.

Now, where do profits come from? The customers buying things that have profit margin. And so you, as a customer, are giving New York Life so much money that they're going to make a profit and give some of it to the owner back to you. Okay. This is a dog chasing its tail. Sounds like a glorified essential oil scheme. Yeah. And so the IRS has ruled that a life insurance dividend is not taxable income because it is the, here's the IRS language, it is the refund of a deliberate overcharge. That's the IRS's lingo.

Run. Run to ZanderInsurance.com get you an inexpensive term life insurance policy. Good God. I get dividends. Yeah, it's a refund of a deliberate overcharge. It's kind of like saying, I got a refund from the IRS and I'm making a profit.

No, it was your money. You overpaid the IRS. That's why they gave it back to you. It's the exact same thing and that's not taxable either, by the way. This is The Ramsey Show. Our scripture of the day, Isaiah 26, 3 and 4, you will keep in perfect peace those whose minds are steadfast because they trust in you. Trust in the Lord forever. For the Lord, the Lord himself, is the rock eternal. Corrie ten Boom said,

If you look at the world, you'll be distressed. If you look within, you'll be depressed. But if you look at Christ, you'll be at rest. Oh, Corrie, well done. Well played. So the live and give bundle that we give to each of the debt-free screamers is on sale. If you want to do a live and give bundle, you can break it up, and you'd have three gifts in there, one for yourself if you wanted, like the Baby Steps Millionaires book,

and give away the Total Money Makeover book and give away Financial Peace University. All three are in there. And, of course, when you get the Live and Give box, it's a bundle. It all comes in a neat box. You can give it all to somebody as a gift. It's only $99. Now, Financial Peace University is normally $99. So that means the two books are, like, free, which is like $50 worth of books free.

So this is like 30-something percent off, right? So it's a good deal. The Live and Give box or bundle or whatever we want to call it, Total Money Makeover Book, A Year of Financial Peace University, and Baby Steps for Millionaires, all at RamseySolutions.com slash box. Shelby is in Boise, Idaho. Hi, Shelby. Welcome to the Ramsey Show.

Hi there. Thank you so much for taking my call. Sure. What's up? So I want your advice or I want your opinion. My husband and I have a student loan debt. It's mine, $99,000. And we used to have 12 grand in credit card debt and we're down to 5,600. So we're feeling really good about that. My question to you is, I was listening to the podcast from a couple of weeks, and I didn't

realize that with my husband's stock, he has vested stock in the company he works for, about $10,000. I didn't think about it, the fact that we kind of have all our eggs in one basket. Should we pull that and use that to pay down our debt, or should we leave it? Nope, you should use it. It's not in a retirement account. It's just vested stock. The stock option is a benefit. Yes. Yeah, just cash it out. You would not borrow on a credit card to buy stock.

And in effect, that's the net effect of what you've done accidentally. Yeah. So, yeah, I would undo that and just cash it out and pay it down. And you're going to have plenty of time to invest later and invest in good mutual funds inside your retirement account once you get rid of these stinking loans, right? Yes, I agree. What's your household income, Shelby?

We make, between my husband and I, we make $94 a year before taxes. Great. How long have you all been married, two years? Seven. Seven? I have two kids. Okay, good. Okay.

Well, so I'm proud for the progress you've made i want you to turn the fire up hotter and get it done faster because i i want you to win we love you and we want you to go out there and kill it okay so get her done kiddo well done well done well played jessica is in billings montana hi j, Jessica. Welcome to the Ramsey Show. Hi, Dave. My husband and I have been on your plan for about the last five years. We have done 3B for the last two, and we've decided to go back to doing four. We're just feeling really discouraged and not being able to afford a house where we are here in Montana and just feeling like we're still years away even after we've been saving for the last four and I just wondered if you had any advice for us.

How much have you saved? We have a $20,000 emergency fund and $47,500 in a down payment fund. What's your household income? Between my husband and I it's $75,000 a year. You need to go buy a fund. What's your household income? Between my husband and I, it's $75,000 a year. You need to go buy a house. We tried. We've been trying. So we looked at a house yesterday for $265,000, which is really affordable for our area. And I know you recommend a 15-year loan, but that seems way out of reach so on a 30 the payments would be between 17 and 18 1800 a month which is more like 35 percent of our take-home pay instead of 25 you're not discouraged you're throwing a fit because you can't buy the house you want that's not the same as being discouraged okay we just haven't been able to find anything lower than that yeah keep looking you need to find a home that you can afford that is a blessing don't buy something that's a curse

because you uh because you didn't look hard enough i mean sometimes this isn't an adventure this house hunting thing um you don't have an unlimited budget you make seventy thousand dollars a year you have forty seven thousand dollars to put down don't put your family into a crisis just to become a homeowner but also don't don't say home ownership's out of reach in billings montana it's not you can do this but you know it may not be the house you saw yesterday and and yeah i would do it on a 15 year fixed where the payment's no more than a fourth of your take-home pay why because i want you to be millionaires later and i don't want this house to ride you i want you to ride the house dave i sheila and i my wife and i did something that's not really it's not the baby steps um

but we found ourself in this situation and tell me if this is crazy we as a couple decided we are going to do essentially a another gazelle sprint so that we can afford this down payment of a house and we decided just to lock things down in the middle for a limited amount of time i think we said nine months something like that and we're just going to work bananas i'll take an extra job and i'm going to adjunct here i'm gonna do that and let's just accelerate this process real fast and get this down payment so that we can then move this thing along. The only thing that's not in the baby steps there is just we teach you to be intentional, not intense.

Right. And you said, in order to get the house I want, we're going to turn up the heat. Yeah. We're going to go for it. And we decided together. Yeah. And so both of you work extra no vacations no eating out and you

go back to gazelle intensity and you take your 47 and you make it 75 right and let's do this for six months and let's just be bananas about it and then it then we're going to have no problem yeah but you the the problem is when you do a little bit of everything nothing gets done that's right and so you you start losing death by a thousand cuts then. And that's what I'm afraid of here. And so it's just, it is, it's not all skittles and rainbows when you go look at houses. No, it's the worst. Because you always see something you can't afford.

Always. We're drawing a house plan to build next summer and um the uh the guy helping us with it actually added the numbers wrong accidentally and so when we actually added them right the house was like ridiculous we're like we're not doing that and we can afford to do whatever but it's just like it's huge you know if we're not just no we're not doing that let's fix this so we've gone through and cut the dadgum thing down but it's it's depressing it hurts right to go backward after you were up is depressing and i can afford it right so i have the choice but if you don't have the choice and you've got to cut down because it doesn't fit the budget or it doesn't fit the situation. It's depressing.

Yeah. If you, you know, it's don't go drive new cars. If you're in the getting ready to buy a new one or used one. Yeah. Because a new one, you know, blow your dadgum mind. And then you can't, you can't return. You can't. Yeah.

And don't fall in the trap of a frustration, a frustration, a frustration. If you're around a child, like a toddler you know they get annoyed they get annoyed they get annoyed and then they just hit something or they just shove something over or they bite somebody don't just go see a house go see a house go see a house and then just get so frustrated you buy it anyway you buy something yeah because it's just the way it is and you don't understand just walk a walk away walk away yeah and reset that's what you back up take a cold shower get house fever i mean it's a it's a real thing i i understand it's easy to be oh listening to her i threw a temper tantrum the other day i wanted to buy something and again i can afford it

i have there was no reason on the planet to buy it none zero except i just wanted it and i that my temper tantrum day was at me. Yeah. You know what I mean? The grown-up me was telling the kid me I can't do this. And the kid me was like, it's so dumb. Well, that's what we're doing with this houseplant. So dumb. But, like, the grown-up me looked at that and went, that's just dumber than crap.

We're not doing that. And Sharon goes, that's ridiculous. We're not doing that. And I'm going, but I like it. And I want it. I want it. I want it. I want it.

And, yeah, I mean, that's human freaking nature and if i who teach this stuff every year for 30 years fall for it then jessica in billings montana you have permission to fall for it too right but you've got to fight the inner child do the next right thing the one on the cereal aisle that throws a fit and says i want it i wanted that no call the wambulance take six jobs Build up your down payment or lower your price point that you're looking at and quit looking at houses you can't afford. And that's what you got to do. It's a pain in the butt, this thing called grown-up Phil.

That puts this hour of the Ramsey Show in the books. Our thanks to Austin, Ben, James, Zach, and Andrew, the booth dudes. They make it happen. I am Dave Ramsey. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace and that's to walk daily with the Prince of Peace,

Christ Jesus. Hey, it's John Deloney, co-host of The Ramsey Show. Did you know over 18 million people listen to The Ramsey Show every week? A lot of those people listen on one of our 600 plus radio stations across the country. To find a station near you, go to ramseysolutions.com slash show.