The Ramsey Show - App - How Do I Spend the $400,000 I Won at the Casino? (Hour 2)

Episode Date: December 27, 2019

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Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Dave Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. I am Dave Ramsey, your host. This is your show. Thank you for joining us. Open phones at 888-825-5225. That's 888-825-5225. Darling is in New York.

Hi, Darling. How are you? What's up, Dave? How are you doing? Better than I deserve. How can I help? Glad to hear that. All right. So me and my wife, we have a mortgage situation.

So me and my wife, we just started at Baby Steps and currently are on Baby Step 2. Now, we own a two-family house in which we live. It's me and my wife, one house, and my sister, my in-law, in the other house. So we are unsure on how should we attack or approach to pay off the mortgage when we get to baby step four, five, and six, if our co-owners are not on the baby step, on the plan, like we do. How do we approach that situation? Yeah.

So what does your partnership agreement on this house say? It's 50-50. Everything is 50-50. Right now, the balance in the New York market is very expensive. The original loan amount was $648. Right now, we're down to $599, and we've been there for four years. And that's the end. But all of the reduction has been 50-50 to this point?

Correct. Okay, and this is whose relative, yours or your wife's or who? It's me and my wife in one house, and my sister and my brother-in-law in the other one. Okay, so let's pretend that your wife inherited $300,000, and you wanted to pay that on the mortgage. What would your partnership agreement say about that? Well, if we apply that $300,000 to the mortgage, I guess they'll be responsible for the rest. That's what I'm thinking.

But is there a written partnership agreement? No, no, no. Okay. You need one, desperately. Because if you pay down on this mortgage, number one, you've got to be able to have a written document that says you get your money back. And then number two, the other problem you've got is if you pay half of it off, there's still a mortgage.

If they don't pay it, you get foreclosed on. Correct. So far, I know for sure that won't be an issue. We have a very good relationship with them, you know, with family. It's not a relationship. They could both lose their jobs. They could both get sick. One of them could die. Things can happen that even if they had good intent and good integrity,

that a situation happens where they're unable to pay their portion. Not unwilling, but unable for some wild reason. And, I mean, if there was a car wreck and cancer, I mean, you can get yourself in a real pickle here. And you're there now. I mean, you've got all that exposure now. This is why I don't like partnerships in general. So I don't know how to tell you what to do unless the state

or the county allows you to split this home's ownership down the middle and maybe create what some areas would call a zero lot line or a condominium to where they own half and you own half, and they're standalone properties, and your half could not be foreclosed on. But otherwise, you're in jeopardy at all times that they're still dead here. And it's not a matter of what they would like to do or how much you trust them. I've met all the people that all the things went wrong in their lives that never thought they were going to go wrong in their life. And you can't control all the outside variables.

So, you know, you guys need a detailed written partnership agreement if you're going to stay in this deal. And you need life insurance to buy the other one out in the event one of you died as a part of that agreement. That's called key man insurance in this agreement to where you're each other's beneficiaries, meaning if your brother died or your sister died, that money be left to you to buy them out buy the other one out and uh and you need agreements on what happens in the divorce event of divorce or death or disability or drug use or disinterest or default all the big d's we call them that screw up partnerships and so um yeah i i do not know of a way to tell you how to protect yourself completely in this situation but if you're going to stay in it and i suspect you are um i wouldn't be in it but if you if you're going to stay in it then you're going to have to have a

detailed written agreement and you need some key man life insurance as a bare minimum nick is with us in lubbock texas hi nick Nick. Welcome to the Dave Ramsey Show. Thanks, Dave. Thanks for having me. Sure. What's up? Well, my wife is finishing up her last semester of school before she gets her undergrad. And she has awarded enough in Pell Grants and scholarships to pay for the semester. However,

she only has five credit hours left. And so she does not qualify for the federal Pell Grants, and she's disqualified for the school awarded scholarships. Is there any way that you know of to be able to negotiate with the school or talk to the school about getting at least the scholarships? I understand the federal aid, but getting the scholarships put on her account so that we can make sure that we

cash flow the last semester. Well, I think you go sit down with the administrative office and say, we're going to quit. We're going to leave your school if you don't work this out. Do I need to take more classes? I mean, if you need to take more than five credit hours in order for it to all be free, take more hours. But you don't need them to graduate.

I understand that. But I'm saying if they require that you just be a full-time student and five hours doesn't qualify you, then go be a full-time student. Take extra hours. We can't afford the full-time students without student loans. That's the problem. Okay. How did you get the agreement?

What number of hours was she taking when she got all the other Pell Grant and got the scholarship before? She was a full-time student. She was 12 hours, and this was just last semester that she got awarded. And so that's why I was thinking about going in. Last semester, did she carry a full load? Yes, she did. Okay, and that was the basis for her award, right?

Yes. And she went for free? No. She got a substantial decrease in tuition, but no, not for free. With the federal grant and the tuition and the scholarship, you still had to borrow money? Yes. Oh, I thought you said you got everything covered before, and now it's not covered. She has $3,100 in scholarships and Pell Grants awarded to her if she were taking full load. I see.

Does that make sense? And what is a full load? 12 to 18 hours. Okay. So she picks up seven more hours in order to be in a full load, and she gets it all, but the $3,100 doesn't cover the 12 hours. Right. Right. Okay.

Yeah, I think you've just got to sit down with the administration and see if you can get the scholarship of the five hours in so you can cash flow the balance. That's what I would do. I think sometimes, I mean, it's up to the school on what they do on that. They can decide to do this. Now, Pell Grant, you're not getting any of that money. It's gone. This is The Dave Ramsey Show.

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That's linkedin.com slash Ramsey. Terms and conditions apply. Logan is with us in Cleveland. Hi, Logan. Welcome to the Dave Ramsey Show. Hi, Dave. How are you doing today? Better than I deserve. What's up?

I was hoping you were going to say that. Hey, 25 years old. Just bought a house here two years ago. I only have $66,000 left to pay on it. Wow. I'm on baby step number six. Wow. I'm just wondering, like, how much of a lump sum should I put towards the house?

Should I quit my investments at this point? I have $53,000 in investments as far as roth ira uh my four five seven account and then just a normal ira so way to go well done logan well done man yeah i'm i'm trying as hard as i can driving a 19 year old volkswagen jetta and uh everyone uh makes fun of me for my phone because it's an old iPhone. What do you make a year? $62,000, roughly. But last year I worked my butt off and worked a little over 700 hours overtime. So that helped me get to the point where I'm at right now.

Well done. Well done. Well, the first million to five million, when you become a millionaire up to about five million, where people make their money is two main areas. Like 90% of the millionaires follow this model. Okay. And one is they get their home paid off. And two is they're systematically investing in their retirement accounts or 401ks, Roth IRAs, and so on.

And that's what all of our data shows us, studying actual millionaires, not theory but actual. And so you're on track to do both at a very young age, which is going to put you in that $1 to $5 million net worth very quickly, probably in your early 30s it sounds like. And then that's going to – you know, other money is made, if you want to get up above $10 million in other ways. But the first $1 to $5 million that I got and the first $1 to $5 million that most people have when I'm doing the millionaire theme hour, it's doing those two things.

So I'm going to keep you right on the baby steps. How much is in your emergency fund? Well, that's the thing. In savings, I have $47,000. You're a little rich on that. Yeah, you're a little rich on that. I'd throw some of that. Throw some of that. You're single, I take it. Right, yeah. You're a little rich on that. Yeah, you're a little rich on that. I'd throw some of that. Throw some of that.

You're single, I take it. Right, yeah. Okay, so I'm going to back that $47,000 down to an emergency fund of three to six months of expenses. Everything above that number, let's pick a number and make that up. We'll call it $15,000. If we want to call it $17,000 000 then that would say we had 50 000 to throw at the house you're getting real close to paying off that house yeah okay now you said 47

in there you didn't say 67 right so that 17 would leave is 30 to throw at the house that only leaves you 36 000 on the house then you're putting 15 of your income into investments for retirement, that's baby step four. We're not going to stop that. Money above that that you can get your hands on, you throw it at the house. You said you're 25, right? 25, yes. I predict if we do that, your house will be paid off in about two years. Awesome.

That's kind of what I was hoping for. So that would be great if it was. You are doing really, really good. Well done, Logan. Proud of you, man. All right, Pat's with us in Lexington, Kentucky. Hi, Pat, how are you? I'm well, Dave.

Thank you for taking my call. Sure, how can I help? I am retired, and I took up a hobby that is beginning to actually make a little bit of money for me. I'm having trouble understanding you. Your phone is muffled. Can you speak directly into it, please? Is this better? Yes, ma'am, much better.

Let's try that. Okay. I am retired, and I took up a hobby that is beginning to make a little money for me. Okay. I sold a painting recently for a fairly good price and my question is at what point do i need to start thinking about um separating my my uh my art money from my personal finances and and potentially starting a little business now you're making money a business a hobby that makes some money is called a business oh that's what i call it anyway and so um you know it it didn't it doesn't

have to be complicated though i mean you can just go down to the bank and use your social security number and open a sole proprietor checking account just a basic checking account nothing fancy okay and sole proprietor just means you own it all but we'll give it a name it's called a dba a doing business as to give it a name so pat so and so dba doing business as pat's art studio or whatever you name your business right okay and then all of your art income goes into that account and you don't pay any art expenses or business expenses of any kind except out of that account. And if the income goes into that account and the expenses come out, what's left in there by definition is called profit. Right.

And that's what you're going to end up paying taxes on. And after a year of doing this, or immediately if you want to get ahead of the curve, you're required to do quarterly estimates if you make more than $640 in a quarter. And quarterly estimates are very simple. Again, what did you take in? What did you spend? The difference is profit times your tax rate gives you your estimate on your taxes, and you're supposed to send your tax estimate in.

So the way we do that is if there's money in your checking account because you made a profit on one of your art deals, then when we take that money out of that account. We hold back 25% of it for taxes. And so if you got $1,000 in there and you want to take some out, or let's say you got $2,000 in there and you want to take $1,000 out. You want to leave some in there for supplies later, okay? We'll take $1,000 out of the account.

We'd set $250 over in a separate savings account for taxes only and we put 750 in your checking account your personal checking account to spend and work towards your particular goals and that's what i would do christy right one of our ramsay personalities here has a number one best-selling book called business boutique equipping women to make money doing what they love i'm going to send you a copy of that you need to read it because you number one best-selling book called Business Boutique, Equipping Women to Make Money Doing What They Love. I'm going to send you a copy of that. You need to read it because you are on the verge of being very successful, and you haven't even thought about it yet. This is very cool.

I love it. All right, Adam is with us. Adam's in Seattle. Hi, Adam. How are you? Hi, Dave. It's nice to speak with you, and thanks for having me on your show. Certainly.

How can I help? Yeah, back in January, I went to Vegas, and I went to Money Playing Poker. And my point to you is I'm just very hesitant on spending this money. I've only spent it on once just to pay one bill. And I just want your advice on this. I'm just very hesitant on spending this money. I just want your advice on this. I'm just very hesitant on spending this money. I just want your advice in terms of purchasing and, you know, because I know this money can go down the toilet and down the tubes really fast.

The number one way it goes back down the tubes for poker players is they go back to the table. Exactly. That's the number one way. You walked away from the table at the proper time, apparently. Oh, definitely, yeah. I the proper time, apparently. Oh, definitely. I won $400,000. Wow. So you're pretty good at this, or at least you were that day.

Okay. Yeah. Well, that's the best place to lose it all is go back over there and try to do it again. But anyway, aside from that, anytime you come into money of any kind from anywhere, what we tell folks to do is just walk right up what we call the baby steps. And baby step one would be to become debt-free except your home. Do you have any debt other than your home? No, just my home, and I just paid off my truck.

And that's the only part of the money that I paid off, so that's it. Okay, then that finishes what we call baby step two. Baby step three is to set aside an emergency fund of three to six months of expenses. And that's Grandma's rainy day fund in case something bad happens. What do you make a year at your

day job? Yeah, I'm a high school janitor, and I make $26,000 a year. How old are you? I'm 23. And you made $400,000 at the poker table? Yes, that day, yes. Wow.

What a story. What a story. Okay. Life-changing. Amazing. Well, I'm glad that you're paranoid. You're wise beyond your years to be that this scares the crap out of you, and that's wise beyond your years. Well done on that.

Okay, so then the next thing I'm going to do is hold that emergency fund back. I mean, you can hold $10,000 back. We'll call that your emergency fund. Then we're going to start investing 15% of our income. Do you own a home? No, I currently rent an apartment. Okay, if you want to buy a property, this would be the stage at which you buy a property, and we would tell you to pay cash for it.

If, at this stage of your life, you're ready to buy a property. If not, then you may want to just start investing this money. I would invest it very conservatively, which sounds weird to tell a poker player that just made 400 grand, but I would invest it very conservatively. And the way to do that is just check in with one of our SmartFestor pros. They'll help you. I'm not in that investment business, but I endorse people that are, happily. And just click at DaveRamsey.com, click on SmartFestor.

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Open phones at 888-825-5225. Diana is in Orlando. Hey, Diana, welcome to The Dave Ramsey Show. Hi, Dave. Thank you for taking my call. Sure. What's up in your world? Well, I just had a for taking my call. Sure. What's up in your world? Well,

I just had a baby six months ago. Yay. Yay. Yes. Thank you. And we bought a house a year ago without those specific plans. And now I'm considering leaving my job to stay home with a baby. And that puts us $2,000 upside down on our budget. However, the only debt we have is mortgage. And I have saved up $80,000 just in my accounts. So my question is, should I use those money? Because I'm planning to go back to work in a year or two. Or should we sell the house and downsize because that's the biggest expense we have right now now what is your household income now well right now we both bring $7,500 after tax each a month a month each oh together yeah so each is $ eight hundred dollars a month i got you

okay and how and uh are you're both about half of that is you correct half is exactly me yes okay all right and um so you make about forty five thousand dollars a year and your house payment is how big? $1,800. Okay. We have a five bedroom house because I have two stepchildren as well. So they live with us part time. So we've got a bigger house, a different sex, you know, good boy and girl, different rooms, almost teenagers. So we made a decision a year ago to, instead of living in townhouse and renting, to buy a house. And my husband is also up to his ears in alimony and child support. I'm already accounted for that without giving you that number.

So after all this, that's how much we bring. How much other debt do you have other than the house? You said none, right? None. Okay. Cards paid for, credit cards we pay off every month okay if you quit your job and come home this house payment is now roughly half of his take-home pay yes and obviously that's absurd yeah and so you've got $80,000 saved, and you're going to subsidize you not working out of that $80,000, right?

Correct, yes. Okay, so you're going to burn through that in order to keep this house. Exactly. Okay. Or you're going to sell the house and move down the house dramatically, okay? Either rent or buy something smaller okay so we need to set your emergency fund aside and we'll call that uh twenty thousand of the 80 just for round numbers okay so hey you don't do you have an emergency fund in addition to the 80

no that's not okay all right so now we have $60,000 to burn through. At $2,000 a month, that's 30 months. Okay. In two and a half years, you're going to have to sell this house or go back to work, and you will have burned through $60,000. That's the thing. I want to go back to work when my baby is 3 I feel like the very first years is important And the job we work is very demanding

So it's a big decision You're not going to have the money to wait that long Because you've got 30 months That's not 3, that's 2 and a half Yeah When did you have the baby six months ago oh there will be three yeah okay so that on their third birthday the house is either sold or you're back in the saddle kiddo or your husband or your husband has doubled his income i don't care he is

working on it he's been in interviews and he's looking for it very but you see what i'm saying here's the thing you cannot plan you you have to have an end date to this because this car is going to hit the wall and it's going to disintegrate mathematically suddenly when this money runs out and then you're going to look around and wonder what happened, and there's no reason to wonder what happened. We can predict it. It's a very predictable thing. Thirty months from today, you're going to be broke and have a house payment that's 50% of his income. So if one of three or four things hasn't happened,

you're going to sell the house, he's going to double his income, or you're back at work 30 months from today. Your child's third birthday, hee-haw, right? Something is going to sell the house. He's going to double his income, or you're back at work 30 months from today. Your child's third birthday, hee-haw, right? Something is going to happen. So let's just go and put that on the calendar and put it on the refrigerator, and let's keep talking about it and working towards it and thinking about it because I don't want you to start looking for a job 30 months from today. You have to start looking for a job two years from today.

I agree. Or put the sign in the yard two years from today. You have to start looking for a job two years from today. I agree. Or put the sign in the yard two years from today. That way you've got six months of pad here, and this thing doesn't melt down on you. You see what I'm doing with this math? Yeah, I understand your math. My question, I guess, is, you know, when is that suspended for the loan? Do you love the house this much? Not really, no.

Okay. I don't. You might want to sell it and move down. It would change these numbers dramatically. That's what I'm thinking. When is, you know, the good time to sell it? No. If my husband doesn't get the income.

Well, I mean, again, how much are you willing to fight to keep the house? How much do you love it? If you love it a lot, you've got 30 months. I don't love it a lot, just talking to you right now. Right now, I don't love it if you love it a lot you got 30 months i don't love it a lot just talking to you right now right now i don't love it at all if i'm you i'm moving down in house because i want more margin than this i don't want to burn up 80 grand it's too hard to put 80 grand in the bank and you're just going to set fire to it here just going to put it out in the middle of front yard and have a little bonfire with 80,000 bucks. And that's what you're doing. That's okay if that's your choice. And you're doing that in order to, you know, be home with the baby and keep this house.

But you can be home with the baby and be in a different house. And the whole thing takes a lot of pressure off of this. Because these numbers are really, if you didn't have the 80,000 in the bank, it'd be just, it'd be over. We'd be putting this house up for sale right now. You know, bank it'd be just it'd be over we'd be putting this house up for sale right now you know it wouldn't be it wouldn't really be a question anymore the only thing that gave you that option is do you want to burn up 60 grand in this case 60 of the 80 so hey interesting question good to talk to you and i'm glad you're making the

i'm glad you're making the decisions on purpose before it blows up on you. So you're being very wise in that regard. Good job. Chris is with us in Green Bay, Wisconsin. Hi, Chris. Welcome to the Dave Ramsey Show. Hi, Dave. Good to be here. Good to have you.

How can I help? Yeah, so I've been listening to your radio show for about six weeks here and got your book, Total Money Makeover, and very excited about all this. But I do have one question regarding my circumstances. I'm a Christian pastor, and so I live in a church-owned parsonage. That's part of my compensation is that they have a home for me to live in. And then in addition, my denomination has a very strong pension plan that's fully funded, fiscally sound, that'll pay me 80% of my income when I retire. Fabulous. So, yeah, it's wonderful.

So, given those two facts, what does Baby Steps 4, 5, and 6 look like for me? Well, 5 is kids' college. We haven't discussed that. Are they furnishing college at your denomination? They do not, no. Okay, then you're going to be saving for your kids' college. Baby Step 4 is saving 15% of your income. I would still do that because in addition to your pension you need some other

monies an additional nest egg in the house of the wise or stores of choice food and oil it says in proverbs wise people save money and then as far as baby step six goes obviously you don't have a home to pay off and we don't want you to go buy a house when you've got a parsonage but someday you're going to retire and you're not going to be in that parsonage and you're going to need a house right right so i might make baby step six saving to pay cash for my house fund in the future out there somewhere okay like when i retire i'd like to have five hundred thousand dollars sitting there to just write a check and buy a house got it that'd be the same as paying off a house only only you're paying it to yourself, and it's easier to do that because you're living in the parsonage as part of your current compensation

plan. But good question, and it sounds like you got some wonderful benefits as a part of that particular denomination. Very well, very well done. Very good stuff. Hey, thanks for the call, sir, and thanks for serving the Lord. This is The Dave Ramsey Show. Danielle is in Raleigh, North Carolina. Merry Christmas, Danielle. How are you? Merry Christmas, Dave. Thank you for taking my call. Sure, what's up? I have a quick question for you. Just trying to understand how to prepare for anticipated financial changes coming up in the summer,

and if I should treat them as 3B, or if we could just continue with our baby steps 4 and 5. My husband is transitioning from the military in the summer. So with that, we anticipate a move and a new job with an unknown salary at this point, since we don't have a job offer this far out. And then a home purchase shortly after moving. We rent for six months or a year. But a couple things that we know that are coming up, and we have savings to include an emergency fund and a down payment for a house. But just with all the changes, in addition to having two older cars that could need to be replaced at any point, if we should treat this as baby step 3B and just stop retirement entirely

and just build up cash, or if we should continue with baby steps 4 and 5. What's your household income now? Well, it's $72. What does he make now? He makes $72 a year. Oh, okay, so you're a full-time mom. Yes, I am.

And how much is in your emergency fund? $120,000. $120,000? That's our total savings. We just kind of have like 25 to 30 earmark as our emergency fund. And what's the rest of that? Down payment on our homes? Down payment or for whatever we need. we're we're both the natural savers

that you described yeah i think and it terrifies us to stop saving you have two years of income okay okay so no no you don't need to save anymore you know you have two years of income saved you have twenty five thousand dollars you got an extra hundred grand laying around for a down payment a You don't need to save anymore. You have two years of income saved. You have $25,000. You have an extra $100,000 laying around for a down payment, a couple of cars, and a transition if worst-case scenario happens and you do all three at one time. And you've got $100,000 to do all that. So, no, you're in good shape. You don't need to worry about that. Your natural state is to worry, and when you worry, save more.

Exactly. Yeah. And no, I think you're fine. The cars are going to make it longer than you think. You're going to make your transition easier than you think because he's already working on it. This guy is not going to leave the military with no plan. He's going to have a plan, probably have a job lined up.

Absolutely. It's his nature i think it yeah it just and not knowing what 25 of our future income will be i think that just that concerned us and thinking like what we need that down payment to be and stuff kind of knowing like well okay let's let's put things in order okay i would not buy a house until the transition is complete no absolutely if he if he lands a job making 80 grand and you want to spend this money as a down payment on a house throw it at the down payment on the house above the 25 000 emergency fund and then then start saving up and pay cash for car replacement. But that's your order. Your transition is number one, house is number two, car replacement is number three. Okay, perfect.

I'm just anticipating Murphy coming and it all happening at once and just trying to favor me one time. It's not all going to happen at once because you're not going to buy a house. Right. Unless you've gotten settled on the transition. Very true. So it can't happen all at once. And if a car breaks, fix it and drive it if you're in the middle of the transition and you don't have any money coming in.

You don't run out and buy a new car in the middle of the transition either. You get the transition settled. You get the new job. You make the move to the other city. And you settle in. You get that income going. You get comfortable with that, whether it's more or less or whatever it is.

Then if you want to talk about buying a house, fine. Or if one of those cars is like about to roll over or something, fine, pick up a car and then talk about getting a house. But, you know, we're not going to do the house or a car purchase until this transition is done. You have $100,000 to make the transition. You're fine. You've done a wonderful job.

Very well done. And thank you for your service. And thank you to your husband for his service. Lily's with us in Buffalo, New York. Hi, Lily. How are you? Good. How are you?

Better than I deserve. How can I help? So I have a question regarding our next house purchase. Our current home, we plan on being here for probably another five years. We're going to be debt-free the next couple months, so we're going to have an extra money at the end of the month. I'm wondering if we should save up for our next home and put it in just like a regular money market,

or if we should be putting it on our current mortgage. You should be putting it on your current mortgage above your 15% going into retirement. Okay. 15% going into retirement, kids' colleges, Baby Step 5, and paying extra on the mortgages, Baby Step 6. You do those simultaneously once you're debt-free and have your emergency fund in place. Spencer's in Myrtle Beach. Hey, Spencer, welcome to the Dave Ramsey Show.

Hey, Mr. Ramsey, thanks for taking my call. Sure, man. What's up? Hey, so I have a business. I build tiny homes on wheels for a living. This is my first, well, I'm 22 years old, first off, but I own this business. I've only done it for a year now. I have zero debt. I live with my parents. I've got wrapped up in the business right now for this year. I've put in about $100,000. My question is, I drive an old truck that I've had since high school. It needs a lot of work. I'm just wondering, I don't know if it's worth it to fix it or if I should go out and buy a vehicle. I don't know if I should be buying a new vehicle. My gut instinct says definitely not. Definitely not.

That's what I hear you talk about. Yeah, definitely not. You don't buy a new vehicle for this. So you said you've got how much tied up in the business? $100,000 is what I'm looking at making this year. I sold a little over 300,000 homes this year. So your profit will be $100,000? Correct. Yes, sir. Profit.

Okay. Cool. And way to go. Wow. That's impressive. And so when you say tied up in the business, so what equipment do you have that you have bought and paid for already? Actually, everything that I have is already paid for, all my tools. How much have you got invested in all of that? I'd probably say about $10,000 to $15,000, probably $10,000.

Well done. So you own the trailer that you haul them on? That's correct, yes, sir. And what is the truck that you're driving worth? So I drive just an F-150. It's a 2004 F-150. I actually don't transport the tiny homes on wheels myself. I hire out a company.

Oh, okay. Yeah, I hire out a company to do it. That way it's insured. I got you. So how much out of your $100,000, how much have you saved? Well, besides buying new shoes and gas and food and paying insurance and stuff, I've saved everything. So how much is in your savings account?

Well, I have it all in my business account. How much is in your savings account? Well, I have it all in my business account. How much is in there? There's $121,000. Okay. Wow. Very impressive. Cool. Cool.

Thanks. So if you wanted to buy a $20,000 truck, you could just write a check, and you'd still have $100,000. Yeah. That'd be okay. I've always been really scared careful scared honestly scared to spend my money so i think like 20 20 000 should be my my cap i just made that up but you know you got 120 in there so 121 in there so you still have a hundred thousand dollars left over

and here's the deal you do not want to own things with motors and wheels total in your life more than half your annual income because they go down in value. And so the truck you're driving, I'm going to guess and say it's about a $6,000 or $7,000 truck. Is that about right? It has actually less. The transmission is shot. I just haven't. Yeah.

Yeah, I think you have done a great job making a ton of money at 21 years old. Well done. We're not going to go crazy. We're not going to buy a new truck. We're not going to put a truck on payments. But, yeah, I would move in the $15,000 to $20,000 range and write a check and buy yourself a truck for Christmas. Merry Christmas. Okay.

I think you're in great shape. You can do all that, and you don't even need it for work. You just want it personally, and you've got the money. It's a small percentage of your income, your net taxable profit a year, and you've done an incredible job making money and saving it. Well done, sir. Very well done. Next thing I want you to do is set up and pay cash for a house.

Wow. That puts this hour of the Dave Ramsey Show in the books. Hey, guys, it's Blake Thompson, senior executive producer for The Dave Ramsey Show. This hour's over, but you can find more great content on our YouTube channel. Catch the most watched Dave Ramsey, death-free screams in the very popular everyday millionaire segment. Go to the Dave Ramsey Show YouTube channel.