The Ramsey Show - App - How Do I Know When It’s Time To Sell the Car? (Hour 1)

Episode Date: December 13, 2021

Career, Education, Home Buying, Relationships, Saving, Debt, Budgeting, Investing As heard on this episode: Sign Up for a FREE trial of Ramsey+ TODAY: https://bit.ly/3rZTUAx Tools to get you started:  Debt Calculator: https://bit.ly/2Q64HME Insurance Coverage Checkup: https://bit.ly/3sXwUn5 Complete Guide to Budgeting: https://bit.ly/3utmVXi Check out more Ramsey Network podcasts: https://bit.ly/3fHhbVE

Live from the headquarters of Ramsey State, broadcasting from the Dollar Car Rental Studios, 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. This is Common Sense for your dollars and cents. Yeah, we teach you to live on less than you make, a concept Congress can't grasp. It's a free call at 888-825-5225.

That's 888-825-5225. The call is free, and some say the advice is worth exactly what you pay for it. Landon is in Memphis. Hey, Landon, welcome to the Ramsey Show. Hey, Dave. I appreciate you taking my call. My pleasure, sir. What's up?

So I have a question regarding real estate. I'm 25. My wife is 23. Our house is paid for, and we don't have any debt. Wow. And so I really love real estate, so our goal is to save up and pay cash for rental real estate. But I'm also very interested in getting my license and selling also. But I just don't know if it's worth my time.

I just don't know a lot of people that necessarily want to buy or sell their biggest asset to a 25-year-old. And so that's the only thing that worries me because I also have another business, but it's not very demanding. I can run it pretty easily, but I don't know. Is it something that I should even consider, or should I just worry about saving up and paying cash for rental real estate? Oh, you should consider it. You should do it.

Because you're wise enough to realize that you've got a barrier that you've got to come over. I got my license when I turned 18 and sold my first house three weeks later. But, you know, who buys a house from an 18-year-old? The other guy wasn't very smart. Right. But, yeah, I mean, I did it, and I sold real estate all the way through college and, you know, all the way up into my 20s. And so, yeah, you should do it.

But you're right. I mean, a little gray in the temples is helpful. I mean, I'm not afraid of the barrier or anything. I mean, I know it's there. I'm definitely not afraid of work. But you just have to put it out there. You have to be so stinking professional and good that it never occurs to them how young you are. Right.

Like, I've got a young guy on my team here that's 30 but i swear to god his soul is 40 or 50 not that he's like an old man i don't mean that but he's just an old soul he's wise beyond his years he carries himself with a poison of confidence and he he um you know he's a leader on our team and he people follow him as if he's two decades older than he is because of the way he carries himself and because of his expertise and because of his intellect and so on. And so, you know, you just have to put other stuff out there for them to focus on the good stuff rather than going, this is a kid, you know, because for 60-year-olds, 25-year-olds, a kid, right? So, but, you know, and you may run into some of that, but you run into it. My mama got her license in 1966 before women were in the real estate business. And we got hate mail in the mailbox because how dare a woman sell real estate?

And worse than that, she didn't wear a dress. She wore a pantsuit. Oh, my God. She must have been a feminist. But anything but, I'll just tell you that. But anyway, it was an obstacle to overcome. She ended up selling more houses than my dad did, and he was in the business too. So she was a great salesperson, and now ladies run that whole world.

So you overcome it, and here's the beautiful thing. The real estate business is more and more and more app-driven, digital-driven, web-driven, Internet-driven today than even it was 18 months ago. And so your age will give you an advantage over my age in that because it's second nature to you. Right. Okay, I see.

Yes, you should go do it. Okay. Because you're wise enough to recognize it might be a barrier. And the way you overcome it is with just unbelievable personal excellence. And be that old soul. And then that 74-year-old widow lady will go, Oh, you know, little Landon, he just took such good care of me. And, you know, that's exactly what she'll be saying, right?

And she'll send all of her friends to you. And that's what will happen, darling. That's the way it works. Judith is with us in Chicago. Hi, Judith. How are you? Hi. Good.

Thank you so much for taking my call. I really appreciate it. My pleasure. What's up? So my husband and I are in a little different of opinion about. Oh, you're fighting! No, no, we're friendly. A friendly fight. It's a marriage fight. It's a fun fight.

Yes, exactly. What are we fighting about? So, if I can give you a little background of our finances. Currently, we have $41,000 in student loans. We have a house that we still owe like $492,000 on. And we are currently paying for two cars monthly that come out to almost like $800 a month. Gee, what do you owe on these cars?

What do we owe still? Yeah, what do you owe on each car? How, what do you owe on these cars? What do we owe still? Yeah, what do you owe on each car? How much money do you owe on each car? So we owe for my minivan $22,000, and for my husband's car $6,000. What's your household income? It's $300,000. Okay. All right. household income it's three hundred thousand okay all right and forty one thousand and twenty two

and six is that the total of your debt not counting your house correct okay exactly so how quick are you going to pay off sixty thousand bucks making three hundred so my husband um says that we can put three thousand,000 a month towards debt, and that that would take approximately, does that make sense, two years? Yeah, that's fairly wimpy. Yeah. $36,000 out of $300,000. Ooh, you're sacrificing.

Not. You with me? True. Okay. $70,000 out of $300 30 300 000 and you are done in one year so what are we fighting about again so we have four kids one with special needs um so we kind of feel like we need i don't know if we need or it's very helpful to have two cars because I'm constantly kicking the kid around to appointments and stuff, and my husband needs to get to work. So do we sell one of these cars? No. Do we? No. No, just hold on to both. You should keep the cars.

You should sit down and do a written budget, and when you do get through kicking your own butt for how much money you're wasting out of 300k you'll see that you can pay off everything on this list except your house in one year 70 from 300k is 230 000 left over minus taxes call the wambulance i think you guys can make it that's what that's the conversation you need i'm being mean but i'm trying to point out to you that if you if you have that conversation with yourselves and you go, oh, my gosh, we're playing around with this. We need to get serious and stay out of restaurants and quit going on trips

and pay off the stinking minivan. I've got a special needs kid, and no, we're not selling my car. I don't know who it was who wanted to sell the car, but they just lost this argument. Well, then, I lost it. Okay. All right. I said we should sell the car and that's awful you got your i kicked your butt and didn't let you win oh my god i'm so sorry what about selling it for a cheaper

car no no no your car's not your problem your unwillingness to sacrifice the rest of your lifestyle is your problem your car's not out of line out of a three hundred thousand dollar budget you're doing just fine you're gonna get it girl you got it you got this you need to keep that car you got those kiddos they're counting on that car and you, that van, special needs. You got stuff you need to do there. It's not out of line. If you call me up and you owe $100,000 on your cars and you make $100,000, I'm selling everything in sight and making fun of you too. But that's not you, darling. You guys are in good shape. You can do this. when we talk about giving like no one else i'm always impressed with zander insurance and their commitment to helping others during the holidays zanderander has donated over $350,000 by pledging 25% of all sales of their ID Theft Protection Plan

to a worthy organization. Once again, this year, it's Team Rubicon, which is an amazing veteran-led disaster relief organization helping affected communities all across the country. Listen, ID theft is out of control, and the best way to protect yourself is with Zander's plan. They offer the cyber and monitoring tools for today's online world and bundle all of their protection services together for the best value out there. I love it. You can even give it as a gift. Visit Zander.com or call 800-356-4282. There's no better way to protect yourself and your family while helping others at the same time. That's Zander.com or 800-356-4282. Do you guys believe Christmas is 12 days away?

That happened fast. It sneaks up on us like they move it or something. We've got the Ramsey Christmas Cash Giveaway going on. We've been giving away $500 a week, and this is your last week to enter for your chance to win the $500 or the $5,000 grand prize. No purchase is necessary. RamseySolutions.com slash giveaway. And for an extra dose of motivation in time for the new year,

we're having our famous $10 sale. You can shop from over 40 of our best-selling books and envelope systems for just $10 sale. You can shop from over 40 of our best-selling books and envelope systems for just $10 each. Number one bestseller, The Total Money Makeover, Rachel Cruz's newest. Number one, Know Yourself, Know Your Money, New York Times bestseller. All $10, $10, $10, $10, $10, $10. Check them out. They're all there for sale. You do not want to miss out on this. All kinds of good things. There's a few of the Christy Wright 2022 planners available. They make great gifts for the ladies especially.

It's a little bit of inspiration, information, calendar, everything all tied, gold planner, everything all set in together. You do not want to miss out on these. Just a handful of them left we always buy to where we sell out because you know it you know pretty soon the 2022 calendar is worthless so you know that doesn't have a long shelf life so there you go it's going to be gone and you're going to miss if you don't get those all at ramseysolutions.com our question of the day comes from blinds.com find out for yourself why Blinds.com is the number one online retailer of custom window coverings, free samples, free shipping, new promos all the time.

Always use the magic word, the promo code Ramsey. Nicole's in Michigan. I started a home bakery earlier this year. I'm wanting to move my bakery to a restaurant space, serving breakfast and lunch, as well as our baked good offerings. I'll be dumping all my savings into this restaurant and going all in am i making a wise decision to use all my savings on this dream well nicole um you don't want your dream to become a nightmare failure is a part of business

if you're in business you're going to have failure the trick is to have non-fatal failure don't have a failure that takes you out and that the way you solve that trick is the size of the failure so have lots and lots and lots of little ouchies instead of one where you lose your head don't get taken out all my savings means I have no money. That's not good, Nicole. Because here's the three rules of business. Rule number one of business, it takes twice as long as you think it's going to.

Rule number two, it costs twice as much as you think it's going to. Rule number three, you're not the exception. So when you move into this little restaurant and you've got it all figured out and you have exactly enough just to open the doors you're gonna run out of money and go broke because it's gonna take longer than you thought it was going to because your projections are based on a wet finger in the air you don't know what this thing's going to produce. The only thing you know is what you've been producing with your home bakery earlier this year. So my suggestion would be, and you're not going to like

it because everybody wants to go fast and not slow, but my suggestion would be run that home bakery a little bit longer. Pile up a little more money, a lot more money. Get more money get your recipes and your customer base dialed in know more about the business than you know nine months after you opened it it's still a little baby business it just started it's cute but we don't want to pledge our whole thing on the back of this baby business i've done stupid stuff like this kid that's how's how I know. I got a Ph.D. in DUMB. I have done so much stuff that has cost me money and lost money, and I have become an expert in the last five years about making smaller mistakes because most of my mistakes have been colossal.

Yes, some of my failures have been, or some of my successes have been colossally large as well, but I'm convinced that we are where we are based on about 10% of our best ideas. The other 90% sucked. And when you're in the shower or on the running trail, all your ideas sound smart in your head. So please go slower. Please don't move in with no money and hope you're going to be okay.

Lack of liquidity, lack of retained earnings to survive a downturn. Your little town that you're in could have a little COVID hiccup and somebody decided to go all communist and shut the whole place down and then you'd be out of business and your savings is all gone. And so there you go. And you've got to have a little more wiggle room than you got right now. And your business is not big enough. Dial it up, dial it up, dial it up and then launch it. So if I were were you if you were my daughter and i were sitting down with you i would say live your dream baby but don't make it a nightmare i want you to own a bakery for the rest of your life and be successful and be highly popular and written up in magazines as the finest baker in the world and everybody's got to go to nicole's place over on fourth avenue or wherever it is i want

that to be you and your best route to get there is wait one more year at least get your customer base up begin to tease them about what's coming coming next year coming in 23 coming attractions on the next episode of nicole's bakery that's what you tease them, build your base, build your tribe, and build your money, and you'll have a much better experience with your life. Jane is with us in Atlanta. Hi, Jane. How are you? Hey, Dave.

I'm doing good. How are you doing? Better than I deserve. What's up? Well, I was hoping I need a neutral party here. My sister and I have inherited mom's home. She died in April of 2016. We inherited it, decided to rent it out after painting it and getting it all ready in October of 2017.

We also have inherited a cabin in the North Georgia mountains so we share both of these properties. Since we've been renting in October 17th neither one of us has taken a draw at all. It's been going into a shared account which we use to pay the taxes, insurance, repairs, maintain the cabin and the home for both of those. So the lawn service, everything. So since we have not taken a draw yet, I asked her the other day, I said, what do you think about taking a draw? Oh, no, no, no.

She wants to continue to rent it. I want to sell it since I don't feel like we're making any money off of it. It just seems like the money was built in 1957. What's it worth? And the cabin was built in the 80s. I'd say we had a lot to the cabin. What's the house worth? I asked her to get it appraised, but she's going to talk to a real estate agent.

It's in the Tampa Bay area. And she's talking to a real estate agent. It's in the Tampa Bay area. And she's talking to a real estate agent. Roughly, what's it worth? Oh, maybe $350,000, $400,000. Okay, pretty substantial. Something like that. Okay. So here's the thing.

Neither one of you live there. She lives right next door to it. See, and I'm thinking, we're all retirement age or coming up on retirement age i'm 58 she's 55 um her and her husband are retiring next year and she wants i think she wants to hang on to it for a compound property kind of thing and then sell everything but my time table's not not her timetable um maybe she should just buy you out i don't think they can afford to do that um and i don't want to i just i hate i don't want to cause any rift in the family i'm not trying to cause a rift in the

family because you want to sell it and she doesn't she she's causing the rift. Thank you. That's not causing the conflict. The conflict is you have two different goals with the same property. One of you, would you consider taking the cabin and letting her have that? She would never do that because they're in Florida. They love

to get away. Okay, so she likes the cabin too. She likes the cabin too. So here's what I would propose. Say, you know, if you get down there in person and have a cup of coffee with her and her husband, just say, listen, I love you all more and I love this house, but I really don't want to own this house anymore. So let's have it appraised,

and I will sell you my half at a deep discount just to help you get into it because I want out of it. And so let's say it appraises for 400 if you sold it you're going to net 85 of that max so sell it seller your half for you know 75 or 70 you don't need the money it's not about the money it's about this thing's not making any money and so you're still going to put a hundred thousand and some change in your pocket go off and do an investment somewhere and she's going to own the house that's what i would do let me just have a personal in person conversation gently kind i don't want to cause a rift but i don't want to own the house anymore so i'm gonna give you a big discount. Let's work this out. In the lobby of Ramsey Solutions on the debt-free stage.

That can only mean one thing. Chris and Stacey are with us. Hi, guys. How are you? Hi, Dave. Thank you. Where do you guys live? Rogers, Minnesota.

What's that near? Minneapolis. Oh, okay. Cool. Fun. Welcome to Thank you. Where do you guys live? Rogers, Minnesota. What's that near? Minneapolis. Oh, okay. Cool. Fun. Welcome to Nashville. Good to have you guys, and you're debt-free. How much did you pay off?

$355,659.12. Okay, do it again. Your wife was turning around on the back of the T-shirt, and I was squinting. I can't see the little print from here. $355,000. Okay. $355,000. How long did this take 57 months five seven months okay and uh what was your range of income during that time 150 to 222 cool what do you guys do for a living i'm a high school teacher i'm an er nurse awesome

very cool okay so 222 and at 57 months you you paid off $350,000. Is that your house? No, we wished. Everything but the house. Big student loans? Yes. Okay. All kids are out. All the kids. Oh, paid for the kiddos.

Okay, cool. Well, you got them off the payroll. Yep. On to the next thing. On to the next thing. Excellent. Excellent. So the $355,000 consisted of what?

The student loans, the Parent PLUS loans. We had a lot of other stupid we had furniture we had cars we even took out a loan on a car that was paid for to get another loan on it um pretty normal stuff yeah very normal they were normal okay so uh what five years ago yeah the thing the thing turns upside down your life changes. You go in a different direction. Tell us your story. So, Dave, we took out a loan for $25,000. We were starting to see the student loan payments come in, and we were getting kind of worried. And I was looking at the dollar amount, and I said, we've got to go get a loan to kind of consolidate some of our debt together.

And the lady handed me a piece of paper and said that we need to sign this and she could pull out credit um for the next six months if we took out any other loans she would call our loan due and i knew we needed to get serious that's when it got real so you came home and did what from there that scared you that was your come to jesus moment it was yeah we um well i loved reading books about money and, but none of them could give us a really plan that we needed.

And interestingly enough, for about two years, I'd been teaching your program in high school. Oh, wow. Yes.

Yeah. He just didn't share it. I didn't share it with her. It was so simple. I felt like I'd be an idiot when I brought it up because she's reading stacks of books,

all kinds of intelligent things. And you were teaching my stuff. I was teaching your stuff. Well, it is so simple. It is so straightforward and simple. And so I finally did. I said, you might like this. I read it, and the next week we made a plan.

Wow. Just like that. Just like that. It was game on. Well, it was perfect timing. It sure was. You know, you had that moment where that it was game well it was perfect timing oh yeah sure was you know you had that moment where that that uh stomach goes up in the throat moment nothing's ever the same after that if you do something about it right and you did something about it congratulations

thank you proud of y'all thank you sir we well done i mean you've been busting it for a long time here 57 months is no that's not five months. That's 57 months. Wow. How did you stick with it for 57 months? Your podcast. Ah, staying engaged. To work and back. Yep.

It was constant in our house. I'm saying that people, you're a swear word in the house. You definitely were amongst several people. Okay. So the teenagers didn't like that. They were kind of out of the house. It was more my family got really sick and tired of listening to us. Oh, they just had to hear you talk about it all the time.

Okay. All right. To the point you print T-shirts, 50 and free for those of you looking deeply into your radio. Yeah, they got T-shirts on 50 and free. That's good. It's good to be free. Yes, it is. It feels wonderful.

I turned 50 in june and he turns 51 in july but our last payment was in june so we're both yeah love it way to go how's it feel to be free amazing we've been married for 31 years never thought i would see this never been debt-free at all no no years no 25 years is stupid counting. Probably didn't think it was possible. No. No. Felt stuck. Very much so. And that's why when that lady holds that ax over your head at the bank, aren't they pleasant?

Yes. She was very nice about it. I know, but if you take out one more loan, I'm just going to call your loan. And, well, thank you. You're a big help. Yep. Oh, my gosh. Well, she was a big help.

Did you end up taking that loan out and it was part of this? I did. We ended up taking it out and it was a big help. Yep. Oh, my gosh. Well, she was a big help. Did you end up taking that loan out and it was part of this? I did. We ended up taking it out and it was a big payment. And then got rid of her as soon as you could. Yeah. Oh, my gosh. Wow. That's so wild.

Good for you guys. Thank you. Okay. Now that you've done it and now that you teach it in high school and now that you actually know that it works and even though it's simple. What do you tell people the key to getting out of debt is? The budget. The every dollar tool is amazing. We didn't even, I mean,

we had the money during the debt-free time that we were in it, but we didn't even take out the extra plus to spend the extra $10. But I think it helped us micromanage it every day, too, to not have those little bubbles had to move it i had to do it myself yeah yeah being on the same page is key you got to be on the same page and so now when you're with your high school students you can say some of the most

profound things you'll ever learn in your life are simple i'm hoping this will really help my credit in the classroom or Or hurt it. You know, we never know. Depends on which high school student we're talking about. If I was in high school, I would make fun of Dave Ramsey if I was in the class. I would trash him. Oh, that's funny because I was that kid. Our kids follow him now.

Follow you. Cool. That's good. Good for you guys. I'm so proud of you very very very well done oh man good stuff what are you gonna do now now that you're free anything we want yeah i'm gonna live breathe a little bit yeah i feel like in the past with all the debt you're never living in the moment because you're so scared of what's going to happen next and is that what the tears were when you're talking about the banker lady?

That was fear? You remembered the fear? Oh, yeah. It is terrifying when other people have control of your life, and this gives you your life back. I'm so proud of y'all. You're cool people. Thank you. You're neat.

Well, I'm honored that you came down here to do your debt-free scream. Merry Christmas to you. Merry Christmas to you. We've got a copy of the new book, Baby Steps Millionaires, which will be out in January. I'm going to give you an early copy. I know a guy. Thank you. And we've got the advanced reader copies that we send out to the press and all. And that's where you're going.

You're going to be there before you know it. And you'll be Baby Steps Millionaires. And you just have to have a whole new T-shirt then. Yes. But it's good stuff. You'll probably be there by the time you're 60 or sooner. It's going to be sooner. Yeah.

Good. Good. I'm glad to hear that. And a copy of Total Money Makeover for you to give to someone, put in their stack of books. Maybe they'll even read it. You never know. So I work for...

We give it at every wedding that we go to. We've been doing that. Oh, thank you. Very nice. I appreciate that. The $10 sale helps. Yeah. It does.

People buy them by the case for that purpose. Yeah. Well, thanks for hanging out with us, y'all. Thanks for having us. Thanks for having us. Thanks for having us. Chris and Stacey, Minneapolis, Minnesota. $355,000 paid off in 57 months. The first time they're debt-free in 31 years of marriage.

Making $150,000 to $222,000. They had it, and they did it, and they did what it took. Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free! Yeah! Yeah!

Woo-hoo! That is how it's done. And you know, there's people out there that will tell you you can't do this, that you're always going to be in debt there are always going to be people to tell you that you're your loser uncle your friend who's a loser you're always going to be in debt you can't get up what kind of a dream is that you can't do that oh you well some debts just part of. You need to grow up and accept that. Sophisticated people use debt. No, they don't.

And yes, you can get out of debt. The only reason to get out of debt is so that you can give with outrageous generosity. Because when you don't have any payments, you can help other people. Broke people can't help other people. Have you noticed that? Because they're kind of concerned about being broke themselves when you get out of debt you can build wealth i mean you know how fast you'd be a millionaire you start investing a house payment ding ding baby you'll be there in about 13 seconds it goes so fast y'all we're just here for a vapor that's what the bible says we're just here

for a short moment and it it goes really, really fast. So you might as well do something with that dash between the date on your tombstone, the date you came and the date you leave. What are you going to do with the dash? Well, let's make them a decision. It's a good time of the year to reset. Really a good time to do that. So let's get with it.

Man, those guys right there, they're rock stars. They took a simple primitive idea and changed their lives way to go chris and stacy this is the ramsey show Merry Christmas, America! We're so glad you're with us. Oh, ho, ho. I love it. I love this season. Because I've got to tell you, the most fun you'll ever have with money is generosity.

If you've had a generosity experience where you received something wonderful and it was life-changing, or maybe you gave something and you were able to participate and be the conduit through which god blessed someone i want to hear your story our last live broadcast of the year we run tape the rest of the year is uh will be uh december 22nd and it'll be a live show three hours of giving we want your giving stories, big-time giving stories, where something big and dramatic happened. Now, if you once left an extra dollar on the tip, I don't need that story, okay? We want to inspire other people with outrageous generosity, receiving or giving. I don't care which side you're on, and if you're too humble because you were the actual giver, well, you weren't the giver. God was the giver. He just used you to do it.

Shut up. We need your story because it inspires other people to do the same thing. Here's the thing. If we increased our generosity in this culture by just a few percentage points, we could make the government irrelevant. Let me correct that. They're actually already irrelevant. We could make them admit that they're irrelevant. They think they're fixing everything.

And if we the people would take care of we the people, it would put them out of business. And that'd just be a wonderful thing. It'd be a wonderful byproduct. Plus, you know what happens if that many people get incredibly generous? Their lives change. Everyone whose generous lives change. So go to ramsaysolutions.com slash ask and put giving in the subject line.

We want to hear your story. Kelly will get back to you and schedule you to be on the air. We're not going to tell you what to say, but we're scheduling the calls because we want to make sure we have three full hours of giving stories. RamseySolutions.com slash ask. Put giving in the subject line. Brandon is with us in New York City. Hi, Brandon. Merry Christmas.

Hi, Dave. How are you? Better than I deserve. What's up? So I have a question for you. My wife and I are in a blessed situation, and we have no debt except our mortgage. Good. We have about 200,000 on our mortgage remaining to pay.

And we're in a situation now where I think we can get rid of all our debt. And we're just struggling on which part of our assets that we should take the money out of to pay it off. So can I give you my financial background real quick? Sure. What are the buckets? What are the buckets we can pull from? So we have a rental property that's all paid off, and we can get at least $200,000 for it. And your balance on your mortgage is $200,000? Correct, yep.

Okay. All right. And that rental property brings in about $800,000 a month. Gotcha. Yep. We have $120,000 in cash, and we have $220,000 in stocks and mutual funds. So that's it. What's your household income? $200,000. Okay. So what does a six-month or a three-month emergency fund look like of expenses? Probably 50 grand? Yeah.

Let's round it up and call it, let's call it 70 grand. Let's call it 70 grand. Okay. Then that means you have 50,000 too much in cash laying around. Yep. Okay. Unless you have something else that that's earmarked for, or is it just laying there? No, that's just laying, that's just, well, actually 30,000 we have, we do have earmarked for or is it just laying there uh no that's just like that's just uh well actually

30,000 we have we do have earmarked um uh because we're going through an adoption process so that is earmarked okay so we got like a 20,000 left over then out of that cash so we're going to set 30 over in the adoption fund we're going to set 70 in the emergency fund and um and we're going to throw 20 at the house that means we need 180 out of the – I wouldn't sell the rental unless you just don't like it. I just take that out of your stocks and mutual funds, and you choose. Okay. Capital gains rates likely going up next year. If you cash out stuff this year, you may get a better rate.

Okay. Biden is trying to raise it because capital gains, of course, we all know is how rich people get rich, and that can't happen. And so you must be destroyed. So, yeah, that's coming. It's in the current vibe. I don't know if he'll get it passed or not, but I suspect he will. The Biden administration, I guess, is whatever.

Anyway, so I'm probably taking some capital gains off the table while you can do it at a 15% capital gains rate for $180,000 worth, which is going to be a lot of your $220,000. But if you cashed out all of your mutual funds and stocks and paid all the taxes and had that pile of money sitting on the table, would you buy other mutual funds and stocks or would you pay off the house? You'd pay off the house. We know that because you called me to ask about it so you're probably with taxes and everything going to get rid of almost both of the twenty thousand dollars in cash and the stocks and mutual funds that's probably what i would do but i like rental property if you hate the rental you can sell the rental you can go either way luanne's with us in iowa city hi luanne how are you oh Oh, my gosh. Starstruck. Me, too. What's up? Okay, so here's the thing.

This is not really a math problem because the math is kind of a duh. It's more of an emotional thing. So I'm a nurse. Obviously, I have the option to go travel for upwards of around $5,000 a week, which is about $3,000 more than I made this week working 72 hours between my two jobs. Um, the concerns are, my husband's a little freaked out by it because I would be gone approximately three to four days a week in a row because the jobs are not commutable, but within're within a few hours drive.

My mom assists us with our six kids and is very generous and does it for basically nothing. I think some of his concerns are that, for one, we have amazing health insurance through my jobs. They're both county-ran jobs, so I have state retirement and very, very cheap health insurance through my jobs. They're both county-ran jobs, so I have state retirement and very, very cheap health insurance. And also, my only life insurance, even though I have pursued it privately, is through my job. I've just not been able to get it through my job because I had a health issue several years ago that put us out, and that was the one brick in the wall that sent it all crumbling, and we had file bankruptcy but of course i got to keep my massive student loans um that i think you just made a documentary about me i watched it so the question is how do we make this decision how much

debt have you got 93 000 except for the house the. So the plan would be you go on the road for how long, and then you come back home and land a new nursing gig? In one year, I could pay everything, including the house off. Okay. How old are you? I'm 42. Okay. And you have six kids?

Yeah, from three to 16. And we do homeschool a fair amount of them, but my mom is huge in helping with that. Okay. Is she up for this for a year? Yes. She has been very supportive. She thinks it's silly that I'm working these crazy hours.

For no money. When I have to go drive to Des Moines for. Yeah, she's the generation that works their tail off. Yeah, okay. Right. She's like, in two and a half hours, you can go to Des Moines, you can work your three nights and come home and be home for four days. And make twice the money.

Three times the money. Yeah. Our local hospitals have done incentive pay, so it's basically an extra, you know, $40 an hour, which by the time you figure benefits and stuff, that's essentially what the travel pay is. Well, the way I would look at it is this. If this was a permanent change, I couldn't sign up for it because of what it would do to my family.

It's not a permanent change. It's a one-year adventure. Can we do, can the kids, mom, the husband, and you look at this like, I'm going to do this for one year and change our lives i've been praying yeah we filed bankruptcy yeah and i feel like god's like here it is yeah i i had a lady on i had a lady do her debt-free scream uh just a couple months ago that paid off five hundred thousand dollars in one year travel nurse covid All she did was work on the road, and she paid off. She made a half a million dollars in one year.

It was unbelievable. I don't think I can work all of the time. I love my kids. Yeah, I mean, you can't do that. You're going back home. You're just doing 312s and getting a serious bonus for doing it. I mean, hypothetically, you could do 312s, come home, and do some more from home. But that's asking a lot.

Yeah. If everybody can line up on this relationally, it's not just the math. It's the sense of I'm impacting my life for a short period of time. People are deployed for six months or a year at a time, all the time in the military. There's lots of people who travel for a living. It happens all the time. And if you look at it as a short-term thing for a long-term gain, and everybody's calling in an adventure, do it. But if somebody's going to really squeal, then you probably don't do it. This is The Ramsey Show.

This is James Childs, a producer of The Ramsey Show. You can listen to all our shows with the Ramsey Network app on your smartphone. Browse by topic or even send clips to your friends. Download the Ramsey Network app in your favorite app store today.