The Ramsey Show - App - How Do I Set Myself Up for Success? (Hour 1)

Episode Date: September 7, 2023

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 actual and amazing relationships. Ken Coleman, Ramsey personality, number one best-selling author of the book Paycheck to Purpose and host of The Ken Coleman Show. He's my co-host today. He talks about jobs and careers and money and, well, doing it in a way that you love it.

And so if you've got questions about all that, you jump in. We'll talk about it and anything else you want to do. We talk about you right in front of you, and we make a living doing it. Phone number at 888-825-5225. Jump in. Marvin is going to start us off this hour in New York, Albany to be precise. Hey, Marvin, welcome to the Ramsey Show. Hi, Dave and Ken.

Privileged to be able to speaking with you. Thank you very much for all that you do. Well, thank you. How can we help? So real brief, I'm 40. My wife is 34. We've been married for 12 years and started a turf grass consulting business with the money that we received from our wedding. So we do work for local mom and pop golf courses and conduct field trials for plant protective manufacturers.

I was able to go full time with the business in 2018 and she was able to go full time in 2020. Um, in January, thanks to you guys, uh, we were able to become debt free by paying off our house. Um, one of our clients, uh, will be selling their golf course soon. So my question for you is, should we buy it for $1.2 million? Well, the first question is, can Dave and I play for free? It could affect our answer.

No pressure. I'm kidding, Mark. Lifetime membership. It's going to cost you, Marvin. It's going to cost you, buddy. This advice is going to be free today dave yeah yeah so uh okay 1.2 million and so this thing is uh has a net profit after all salaries are paid including whatever the owner is paying himself to manage the course because it's a mom and pop. This thing is making $300,000 a year?

No, it's doing about $150,000 to $200,000 net. Okay. So why in the world would you pay $1.2 for that? That's overpriced. Yeah, I mean, you know, I know the golf course business fairly well. The infrastructure in the golf course business, the worth comes from the assets, right? Meaning golf carts, right, maintenance equipment, things like that.

No, the worth doesn't come from that. No. Those things only have a value to the extent they create a profit. Okay. If all of those things created zero profit, you would have what's known as a hobby. Okay. Not a business.

And so the golf carts, the infrastructure, the quality of the turf, everything there, the name, the reputation in the community, the area of town it's in, all of that goes to create one thing, profit. And the way you calculate profit is net profit. A small business is worth a maximum of five times net profit. Five times net profit. That's a 20% rate of return. And a small business purchase is a very high-risk purchase, and so you would want at least a 20% rate of return. And that's if you're an absentee owner.

And so let's say I bought it for in tennessee okay and i i had to hire a manager and i had to hire every single staff member that was needed not you get to work over there for free or the former owner gets to work over there for free and thereby increase the profits you follow me yes they do real profits for an absentee investor. This is how you calculate the value of a small business transfer. And it's called a cap rate process, capitalization rate.

The only other way you could calculate the value is what's called book value, which would be considerably less, and that is if you bought it and you sold off all the assets, you sold off the golf carts, you sold off the real estate, you collected the receivables, you paid the payables, and that's book value.

That should be less than four times, five times net profit. It should be. But that's if you were going to disband the whole operation, and it's worth more shut down than it is operationally then. And I doubt that's the case here. Because I got to tell you, man, I don't know a ton about the golf business, but there's kind of a joke in the investment world that the guy that makes the money on a golf course is the second owner, the guy that makes the money on a ski slope is the second owner

because the first one usually goes bankrupt. There's not much margin or spread in that world. Very low margins. And so, yeah, just be careful to not overpay for it. If you're going to pay cash for it, Marvin, and you want to buy it, it sounds like you know the golf business, at least the side of it that you've been in. But I'm telling you, the finances on this deal, they don't sound that great.

And if the guy goes, well, the real estate's worth a lot, then he ought to just sell the real estate. If the real estate's worth more than a million-two, then he ought to just sell the real estate, put condos on it or whatever. Because, I mean, from a business transaction standpoint, not a romantic view of grass and trees and ponds. The real estate is unquestionably the most valuable part of this purchase. A mom-and-pop golf course is a mom-and-pop golf course for a reason. Not knocking them. I've played some awesome little munis in my life, and they're great. But this is a low-margin business, and you probably don't have the clientele. You look at how old your average member or your average golfer is, I'd be running all those things

beyond everything that Dave mentioned. And unless this is a burning conviction and you got the cash for it and you can handle it, I'd run away from it unless it's a real estate purchase only. I mean, it's just such a low margin business. You're competing against, in that area, you're competing against higher end clubs that are charging much, much more. And you're just limited in your growth with a small golf course. You're limited. Your revenue growth is limited. Got to love the way Ken throws around the insider lingo. What did I say? I've played a lot of really good munis in my time.

Oh, I'm sorry. A municipal course. You're right. That was inside baseball. Inside golf lingo. It just means a local public course, not a private course. It's public. Anybody can play.

I've played a lot of really nice munis in my lifetime. That was pretty good, Ken. I like the way you did that. You slipped that right in there. It's added to your level of expertise. It was an accident. No, it wasn't. No, that's all I could afford to play.

My dad, that's all we could play were munis when I was growing up on a pastor's income. When I think of munis, I think of municipal bonds, muni bonds. Oh, in the golf world, that just means a goat track. I know, I know. I figured it out. I figured it out. No, it's not necessarily a goat track. There are some nice ones. There are some very nice ones, yes. I do know what goat track means. It means a goat track. I know. I figured it out. I figured it out. No, it's not necessarily a goat track. There are some nice ones.

There are some very nice ones, yes. I do know what goat track means. It means horrible golf course. I'll tell you a great one in the Virginia Beach area, Stumpy Lake. There you go. It's a great municipal golf course. Great name. Stumpy Lake.

Yeah. A bunch of tree stumps all over the lake. Well-known muni as of today. Useless information from Ken Coleman. This is the Ramsey Show. muni as of today this is information from ken coleman ken coleman ramsey personalities my co-host today thanks for being with us america we appreciate you hanging out open phones at 888-825-5225 our question of the day comes from Neighborly, your hub for home services. Most American homes have dozens of appliances, and chances are at any given time there's something wrong with at least one of them.

Mr. Appliance, a Neighborly brand, offers expert appliance service on your schedule. Visit Neighborly.com today to find home service experts, including Mr. Appliance in your area. Today's question comes from Neil in Wisconsin. I'm wanting to get my degree in the financial industry. What is the average starting salary for someone who is straight out of college, and what would their position be? How much room for promotion and growth is in this industry, and how do I set myself up for success? Neil, I don't know off the top of my head what an average starting salary is because this is kind of a big, ambiguous question.

The financial industry covers a lot of different specific trades. Now, you can be everything from bank teller to CEO. Yeah, so that's a pretty wide range. But the second part of the question we can address, how much room for promotion and growth is in this industry? Well, again, depending on the lane that you pick within the financial industry, think of it as a track and field track. There's six, eight lanes there, multiple lanes. It depends. You can do very, very well. There's no question you could do high six figures and you could be a seven-figure earner

in the world of finance. I mean, there's just no question about that. That's everything from Wall Street to an investment professional that does very, very well. So the sky's the limit is the answer to this. How do you set yourself up for success? That's the answer. The answer to that is it doesn't matter on the industry. I think it is three parts. You got to know your role on every level that you're at. That's clarity. Do I know what's expected of me? The second thing is accept the role. Win the now. Have an attitude of gratitude for where you are and bust it. There is no next if you don't win the now. And third, maximize the role. Go above and beyond. Don't walk around acting like you're the CEO, but then work like you are, like you own

the place. That's know your role, accept your role, maximize your role. That's clarity, attitude, and effort. I think if you do that on every level that you're at, you're always going to be promotable. Yeah, absolutely. And, you know, bathe, smile, show up on time, smile, don't be an entitled twit and um these things will take you a long way it's true i mean it's because really i mean in a world of um people who don't do those basic things you you really do set yourself apart yeah it's just a big deal just show up on time you know and um wow so yeah so neil the the the problem that we're having answering the question is it's like saying i'm going to get a marketing degree what do marketing people make well there's about eight eighty thousand different things marketing people

do and the same thing's true with financial a a finance degree. I have a finance degree with a specialization in real estate because I wanted to be in the real estate business. That was my goal. I grew up in the real estate business. That was the long-term thing. But I've got all the financial goober classes under my belt now. And so 1,000 years ago I did. And so, you know, now what are you going to do with that?

There's a lot of different things. Like Ken said, corporate position as a financial analyst. But finance in general, finance and accounting are really good baseline sets of knowledge to move into companies and do very well. For instance, there's two primary sources for the CEO of major companies in America today. Almost all the CEOs in major companies in America today are either former CFOs or finance people, accounting people, bean counters of some kind or another, or they were the director of marketing and sales. That's the two primary pools that CEOs come out of.

The people that bring in the revenue and the people that manage and operate the business well from a numbers perspective have a higher likelihood of becoming CEOs. Very few people come from the graphic arts department to become the CEO. And that's not to put down the graphic arts department. It's just a statistical fact. And so, you know, you look at where that's taking you. So, but yeah, it's a great degree as a baseline of knowledge because in getting that degree, it's a basic business degree. You're going to end up with good statistics under

your belt, good accounting under your belt. You're going to end up with marketing classes under your belt. And, you know, those are going to be knowledge bases that you'll use wherever you land in business. So all of that sets you up for a positive situation. Carla is in Florida. Hey, Carla, welcome to the Ramsey Show. Hi. Thank you for having me. So excited to be talking to you. I watch you all the time on YouTube, and I love your show. We appreciate you being here. How can we help?

So I have some questions. I've been plowing through my baby steps and especially paying off like credit cards. Good for you. And I don't have anything saved up in retirement. I'm a nurse. I've been a nurse for 25 years. I make $138,000 plus a year. My home is paid off. My biggest expense is my car, which I owe $23,000 on, and my interest rate is 4.4%.

So first, I'm going through these baby steps, but I was paying off cards yesterday, so I paid off six, cut them up. Way to go. Threw away all the papers so that I wouldn't be tempted to call them back for a new car and now I ran into the next one that I wanted to pay off and they said if I pay it off see this one has an annual fee and they said if i paid it off it was going to ding my credit and that you know just keep the card and pay the annual fee but i was like well how much is that going to ding my credit and does that matter because that's the next card to pay off i have five more to pay off so wait a minute let me get this straight a credit card company told you it's not a good idea to get rid of a credit card right no they said keep it open

you're kidding hurt my credit if i closed it yeah of course they did yeah well it is it's gonna it is gonna damage your credit score so the question is. Where is it we're trying to get to? Is a credit score your goal or is money your goal? Retirement is my goal. Yeah. And by the way, I've had people try to boil their credit score. You can't eat it. It's worthless.

You know what a credit score is good for? There's only one thing a credit score is good for there's only one thing a credit score is good for you know what it is get more credit borrowing more money going into debt which is kind of the opposite of having money for retirement it's the opposite of what you're trying to accomplish right now so if your goal is to get rid of your debt so that you have some money who cares about your credit score yeah and you know i i you drove right past that you didn't even get it yeah how old are you i am 60 you're killing it with 138 000 girl i'm proud of you very good yeah let's get these cards chopped up and get rid of

this car payment start piling up some money. So five or six years from now, you've got $250,000, $300,000 set aside. And quit screwing around with credit card companies. If I can pay all my cards off within the next two months and then start making in a year. Oh, you can do it faster than that. You make $130,000. You ain't got anything else to do. This is important.

Well, I do help my mom and my daughter out. Well, how much do you give them? I pay my mother's car insurance. And my daughter, about $500. You're paying an 85-year-old's car insurance and my daughter about $500 a month. You're paying an 85-year-old's car insurance? Yeah. Does that seem weird to you? That's scary to me.

Well, yeah, but she's only living on Social Security. Yeah, I know. So where's the 85-year-old driving to? To church and to the grocery store. Yeah, I thought so. where's the 85-year-old driving to? To church and to the grocery store. Yeah, thought so. This is pretty expensive trips. So you need to think through where your money's going and get control of it. And for sure, we don't take advice from credit card companies on anything.

All we do to them is say, bye-bye. See ya. Wouldn't want to be ya. You are the cigarette of the financial world, you credit card goobers. We don't want anything to do with you. This is The Ramsey Show. Ken Coleman, Ramsey personality, is my co-host today. Thank you for joining us, America.

I'm Dave Ramsey, your host. Open phones at 888-825-5225. Ben is in New York. Hi, Ben. I'm Dave Ramsey, your host. Open phones at 888-825-5225. Ben is in New York. Hi, Ben. Welcome to The Ramsey Show. Hi, how are you doing? Great, man. What's up?

I am currently living with my parents. I am 29. I've been saving for several years now, and I'm trying to figure out if I am ready to buy a house and if I can afford to, you know, get my own place at this point. Okay. How much do you have saved? 100K.

Okay. What keeps you from leaving there and buying a house? Well, I was mostly just trying to reach a certain certain i was trying to reach that goal of 100 100k save okay you got 100k you got 100k i mean common sense tells me you could go buy a house in albany with 100k you're 29 years old how much do you make uh about 70 75 cool all right i i would definitely do it like this week you think you think that's a good idea? Because I didn't want to rent.

I didn't want to be throwing out money. Dude, impulsive is not on your list of things to do. We don't have to worry about you being impulsive. You're 29. You live at home. You're not impulsive. Okay? Time to go.

Yes. Go get you a house. Get you a life. Yeah, for sure. No, I like it. I love it, man. so how much do you make again 70 what do you do 70 um i work in accounting okay you are risk averse aren't you man you're just hey um it's time man go out in the sun see the sunshine the uh the uh the you are a numbers dude

i love you i'm a nerd i'm a numbers nerd too man so i'm right there with you ben you've been crunching numbers and crunching numbers and crunching numbers and the problem with those numbers nerds is and you're you're one i'm one so i'm owning it with you we can get paralysis of the analysis and you have a bad case sure get a house get a life go go go don't worry i mean go have some fun man go get you know and and tell your mama you love her and you'll see her in five months yeah i mean she's gonna be she's gonna be glad to get rid of you i promise i don't think she is actually well i think that's part of the he's an easy guy to live with he's not a problem he's not let me tell you something not like he's having parties in the basement or something we're seeing more and more of this and i'm not picking on no ben but i

do want to say this ben go by there's two things that are going on number one he's got the analysis paralysis situation yeah but he also along with the fear of change is how comfortable he is at mom's house and that can just keep you when you because you can justify staying by using the numbers and i think you got to be realistic how much of this is i'm just afraid to kind of go out and start adulting that wasn't even a term 10 years ago and i hate saying it i'm a little embarrassed that i even uttered it yeah but i mean it's time for a lot of – A great callback. But, yeah, I just think we've got too many young 20-somethings that are just terrified of change.

And we've got to call that out. Let me just tell you, when you're out there on the wire and there's no net, it is terrifying. It's also exhilarating. It's also what makes you a man or makes you a woman, my son. Yeah. So, yeah. Hey, you know, yes, Ben, you should go buy a house.

And we're not picking on you, but you did open a can of worms, so we'll deal with it for a second. Here's the thing. Moms and dads, you're not doing your kiddos favors when you leave them in the nest too long. A eagle that stays in the nest too long becomes known as a turkey. And Ben, I didn't just call you a turkey. I'm talking about a concept here, okay? So Ben, you're free from this.

We love you. We're happy for you. We're glad you got 100K. You need to buy a house in the next month, and you need to move immediately for your sake. And it's good it's good you know we're there but uh so our oldest when she came out of school easy kid oh yeah denise to this day she's just a pleasant easy person and um and she moved back to our she's the only one that moved back to our house after college and uh she was waiting on a roommate situation to develop so she could go get the the first rental property right

and um so she's living there for about uh two months and we said okay that's probably enough and she's like what i'm like you know you you got it you got to get this done because not because we don't like you she was not in our way she's like bent she could live there and we wouldn't wouldn't have noticed she been there until she 29 we wouldn't have noticed but uh we're like no you are missing out on life when when you're 22 23 25 years old and you live in your mama's basement you're missing out on life yeah and so you need to go be somebody and um it breaks our heart because we love you. We like having you around. But it's not about us.

It's about you and your development as a person, your emotional, your psychological, your spiritual development, your financial development. You become a different person when you buy your own eggs and pay your own light bill and fold your own clothes. Or don't, but they're your clothes. Yeah. And it just changes. there's a little thing happens there a little different thing and again ben for god's sakes we're not picking on you okay we're not you called up you're a nice young man we appreciate you none of this is aimed at you but i'm just telling you folks moms and dads you are stunting their growth 100% reminds me that

movie with matthew mcconaughey was a horrible movie. I don't know. I think it's a great rom-com. Matthew has done some really good work in his life, and that is not on the list. This is exciting, folks. Dave Ramsey with a strong opinion on a rom-com. I never thought I'd see the day. This is great. If your co-star is Terry Bradshaw, I'm just saying.

You're right. The quality of the script writing was low. I'll give you that. But when Stacey wants to see it, I say, okay. Yeah, well, yeah, there is that. I'm blaming it on her. Yeah, I would. I'm blaming it on you. Joe is in Louisville, Kentucky. Hi, Joe. What's up?

Hi, thanks for having me, guys. How are you? Better than we deserve. How can we help? Good. So just quick background uh last year i had uh i left the job that i was at for about 15 years uh since then i've been struggling to uh you know find a job uh to make what i need to make to pay the bills and i'm primarily using job boards and they just seem to not be going anywhere that Oh, they're awful. That's horrible. Yeah. Resources out there, I guess.

What were you making? I was making about $130,000 a year. Doing what? It was commissioned, so it kind of went up and down. Sales and management. Okay. And why did you walk out the door without having anything to go to? Well, they had a new ownership come

through and one of the first changes they made was pay uh for the regional managers so i ended up um was on the pace for about 70k after they uh took over okay so cut your pay in half and you said you should stick it okay i got that All right. So have you been working? Have you been working? Yeah, I have been working. I'm currently making right now about $55,000 a year. So do you know how to sell? Yes, I can sell. What were you selling before when you were making $130,000?

It was furniture. Wholesale or to customers? I mean i mean are the consumers i'm sorry yeah customer uh customer two customers so okay retail okay wow i gotta tell you my mom uh sold furniture was a manager of a large furniture chain for 35 years and if you can make that kind of money in furniture those margins aren't that high uh you've got a lot of options in front of you right now, a lot. And you've got to stop job boarding, and you've got to start having coffee with people that you know, civic clubs, churches. You know a lot of people. And look, you can sell anything.

You're not a guy who's stuck in an industry. In other words, you aren't just effective in the furniture industry. You know a product. You know a service. Not only can you sell it, Joe, but you led a team of people. Medical device sales, you can make two and a quarter. Easy. Easy.

So I've looked at some medical, like, sales jobs. I just feel like, you know, I don't feel like it's you know i'm qualified i guess for do you just apply anyway yes there's a lot of doctors making the sales or sales people i got a friend who's two doctors yeah i got a friend who's got who's a former college football player i'm not knocking football players he's advising surgeons on orthopedic devices in the operating room not because he's a genius because they trained him on the devices. Dave's right. You don't need anything other than a willingness to learn

and basic intelligence, and you have both of those in droves. Hey, we're going to send you Ken's book, From Paycheck to Purpose. I want you to go on his website and learn his... Oh, no. Also, we're going to send you Proximity Principle. That's what it is.

His other number one, because that's what you do instead of job boards. It'll help you do what you're supposed to do. Yeah. Open phones at 888-825-5225. Ken Coleman, Ramsey Personalities, my co-host. Evan is in Indianapolis. Hi, Evan.

How are you? Good. How are you? Better. How are you? Better than I deserve. What's up? So, I'm a young guy. Last couple years, I'm a numbers cruncher, and my numbers aren't crunching anymore. I'm not able to build my savings,

and I'm not sure what to do with it. Okay. What do you make uh i make 27 50 an hour okay and uh so what is that about 70 a year um it's more like 60 a year isn't it yeah yeah okay What do you do? I'm an ag mechanic. I work on farm equipment. Okay. All right. And how much debt do you have? About $117,000. On what?

$75,000 on my house. I've got $27,000 in student loans and $16,000 on a car. Okay. All right. Are you single? No. Getting ready to get married in a month. What does she make?

She's part-time because this is where the whole two-year thing came in. We had a kid two years ago. And so she makes, I think she makes $15, makes 15 an hour and she works 20 to 25 hours a week okay all right well there's two sides of the equation the income side and the outgo side and if we want to change the numbers we usually end up working on both so you're working 40 hours, she's working 15. Somebody's going to be working more if we want more money. Or we're going to be working differently, meaning a new career,

if we want more money. And that. The outgo side is a car payment and a student loan payment. When you get rid of those by tearing into them and making them the major priority a priority above all other things and get rid of them uh then you know you can get there but if you guys are making a hundred thousand between the two of you or eighty thousand between the two of you you can work through a sixteen thousand dollar car debt and a twenty seven thousand dollar student loan debt you know in 18 24 months but you're gonna be on beans and

rice rice and beans you're gonna be working. But you're going to be on beans and rice, rice and beans. You're going to be working overtime, and you're going to sell so much stuff, the dog thinks it's next. Are you budgeting? I mean, I kind of do. I mean, I don't have any. No is the answer. I don't have a, yeah, no.

Okay. Yeah, and that's not a setup question, but when somebody says, I can't seem to get caught up, I can't seem to pile up savings, we have baby steps anyway. So we want you $1,000, baby step one, that's for emergencies. Then you're attacking this debt, but you've got to know where your money is going. And if you're not budgeting, you're going to have a hard time getting traction, whether you're in baby step one getting a thousand dollars baby

step two knocking that debt off baby step three saving up three to six months emergency fund if you're not budgeting you have a greater chance of spinning your wheels because you just simply don't know where the money's going so when are you getting married uh october the 7th awesome hey we're going to give you a wedding gift oh Uh-oh. I'm going to put you and the bride through Financial Peace University. Both of you have to go if I give it to you for free. Do you promise? Yes, I promise. It's nine lessons.

It also includes the world's best budgeting app, EveryDollar, the premium version, which connects to your bank. And I want you to jump in that immediately and start using it today. I'm going to give it to you right now. Austin's going to pick up and tie you into it. But get on the EveryDollar app like Ken was saying, because here's what we find. Research has shown across the general population

that when people start doing a written budget each month, they have a 10% to a 15 percent lift in their money because there's that much in lost in just disorganization and impulse spending we find it's actually more than that because the people we're dealing with are different than the general public the people we're dealing with are like you evan they're sick and tired of being sick and tired and they're about ready to bust into something and so they lean in even harder on that budget and they make every one of those dollars squeal they make every one of those dollars behave and that's why we even call the budget every dollar every dollar has an assignment and that's why the budgeting app

is called that every dollar has a name every dollar has an assignment and so you're just going to get um merciless on making the money that the two of you have coming in behave and squeeze every dime out of it increase your income decrease your outgo and then walk these baby steps and if financial peace university will help you do that and uh certainly the every dollar budgeting app will help you do that so check those out we're going to give them to you free as a wedding gift and get you started because i've been right where you are evan when people say ken ken caught that beautifully because i used to say that too i can't seem to get and what that usually means is i haven't been able to out earn my disorganization i haven't been able to out earn my stupidity i haven't been able to out-earn my impulse spending. I haven't been

able to out-earn my lack of a plan. And nobody can, by the way. And I used to think I'd just go get more money because I'm an abundance guy. And I would go get more money, and then I would screw it up. And so you've got to make the money that you have behave. And when you're managing that well, you become what's called a faithful steward, someone who is stewarding their money in a trustworthy manner, and God looks down and goes, oh, wait, there's one in Indianapolis that gets it. Ha, who knew? You know, and we might be able to let him manage some more.

That's right. If he's managing what he has well. Hello. That's a basic biblical principle. And last piece of encouragement, Evan, if you budget first, dive into every dollar, start to see where the money is, you'll be more motivated to do extra work. Because as an ag mechanic who can work on those big old machines that I don't even know how they work, right? He can work on a lot of different engines. He's got some transferable skills. There's a lot of side work

where you as a mechanic can make really good money, but you're more motivated to do that when you go, okay, now I'm actually getting ahead because I'm now disciplined and I have a plan. Yeah, and where do I want to be in 10 years? Right. So now you're going, okay, I'll go bust it. Yeah, and where do I want to be in my career in 10 years?

Yeah. That's the plan. This is how it works, boys and girls. Beautiful. Hey, Austin will pick up and get you signed up. We'll get you taken care of. Susan's in New York. Hey, Susan, welcome to the Ramsey Show.

Hi, how are you? Better than I deserve. What's up? I have a question. I'm currently in a condo that I want to sell, and I'm looking at either renting it out and then buying something new or maybe selling it and kind of taking this like windfall

we want to call it that that's going on in real estate and pay off my debt and then also buy something new either way I feel like I want to leave this condo but I'm afraid to let it go because I have a good interest rate on it I'm not, it's called a windfall you you nailed it oh you're gonna take the money and run let it go let it go oh my god how about that dave you didn't see that coming no you're right that was on key but i hope i never see it coming again jade did the exact same thing yesterday but it was a little better well jade is that a lot

better than me let's just call it out so anyway. Susan, we've been interrupted here by a solo that was uninvited. It made the point. So the deal is this. Yeah, you don't want to keep the condo because you're becoming a landlord by default, not by intent. If you own another house and you were debt-free and you had a pile of, you know, and you wouldn't go borrow on that house in order to buy a condo in the city you just wouldn't do it and effectively by not selling this it's the same thing as if you bought it you know in terms of a balance sheet or in terms of the decision making

paradigm and so yeah you're much better off. I can't even say it. You went there. You caught yourself. Yeah, it's just I got to chill. But let it go. Yeah, that's what you need to do. And you're going to be humming that around the house tonight. Sharon's going to be like, what are you doing?

You're going to be like Coleman. Who are you? That's all you need to say. She'll understand. It's all Ken Coleman's fault. She'll understand. So many things are Coleman's fault. She'll understand. So many things are. But hey, you've taught this for years.

The idea of being a landlord long distance or even local, it creates headaches. Yeah, just, you know, yes, real estate's a good investment, but very few people back into it. You need to walk into it with cash after you got the rest of your finances straightened out. So sell it, Susan. Sell it, please. That's what I would do if I woke up in your shoes. And thank you for the call. you know The Ramsey Show is one of the most popular podcasts in the world? Get your daily dose of advice on life and money. Check out all of our shows from the Ramsey Network wherever you listen to podcasts.