The Ramsey Show - App - How Do I Stick to My Budget? (Hour 3)

Episode Date: April 5, 2023

Dave Ramsey & Rachel Cruze answer your questions and discuss: "How much should I spend on my side hustle?" Daymond John on learning to earn, "How much house can we afford?" The best way to invest for your kids. Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Want a plan for your money? Find out where to start: https://bit.ly/3cEP4n6 Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6 Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

Live from the headquarters of Ramsey Solutions, broadcasting from the pods moving in storage studios, it's The Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. Rachel Cruz, number one best-selling author, my daughter, Ramsey Personality, is my co-host today as we answer your questions about your life and your money. Open phones at 888-825-5225.

Jackson, Memphis. Hey, Jack, how are you? Hey, Dave and Rachel, how are y'all doing? Better than we deserve what's up um well I mean it's a lot of questions in one but um I'm kind of working a lot right now and I just need some direction really um I'm 18 years old and I'm trying to pay myself through college. I'm already planning to go to community college and I don't have a car and there's just a lot of things that my family, excuse me, can't pay for. I've got allergies. And I was just wondering, like, how should I spend the money that I get in, like, in preparation for going through college?

Yeah, that's some great questions, Jack. Are you a senior right now in high school? Yes. Okay. And do you have any money saved going into next semester's tuition for the fall? No. I'm actually $800 into my emergency fund. Okay, that's great. You mean you have an $800 emergency fund? Yeah. Okay, good. And how much will community college be per semester?

It's going to be free for the first two years. Oh, that's great. Okay. And so a car is something that you're going to be looking towards. Are you going to be living at home while you're at school? That's the plan, yes. Yeah, that's great. So your expenses will be books, things to get you academically, and then maybe some money for food and gas and all of that, correct? Yeah. Just some basic expenses.

What do you think you're going to be making at these hustles? So I just got blessed with a nice backpack leaf blower, and I posted on my neighborhood Facebook page and stuff, and I've got a few yards that I'm fixing to do. And I would be making about an extra two, I think so, an extra $200 a month probably. Okay. You got blessed with a backpack what?

Leaf blower. A leaf blower. I didn't hear that yeah that's great because rich people are afraid of leaves okay so yeah you can turn that into money yeah um okay so your side hustle is lawn care yes sir with allergies okay uh i went through the same thing. That's why I'm laughing. I can remember running the weed eater and sneezing for three days. Okay.

The, well, you know, what you're looking at is basic math, simple math. Okay. You want a $2,000 car? At $200 a month, it's going to take you 10 months. At $500 a month, it's going to take you 10 months. Oh, well, I make, sorry to interrupt, but I work part-time at Firehouse Subs, and I make about $1,000 a month. So I'm just doing that as well as working part-time. Oh.

I thought your side hustle was your only thing. Oh, it's a side hustle. Your main gig is Firehouse, aside from going to high school. Yes, sir. Gotcha. Okay, so $1, 1200 a month yeah okay good and how much of that can you put away towards a car um thousand i'd say i want to try and save up about like four thousand if you did a thousand for four months, you'd have it, right? Right. Okay. And I guess like another question is,

um, it's just like, I feel like expenses, they just like come out of nowhere. Like for me, prom is something that I was like planning to do, but like now that I do the every dollar budget, like I'm just now seeing how this stuff adds up. And so I was just wondering, how do I stay focused and make decisions on purchases, especially trying to save for college a car? Yeah. Let me just say, Jack, this is a great life lesson because while prom is the reality in your world,

life and other things are the reality for other listeners. That stuff will continue to always come up like that. You are experiencing true life with that. I mean, that is what happens. And so in your budget, we have what's called the miscellaneous category. So I would put that in and put some money towards that. So it's kind of your catch-all when stuff does pop up and you're like, oh my gosh, I didn't realize I had that.

You can take money out of that category so it doesn't completely ruin your entire budget. There's going to be some stuff you have to say no to. I don't want you saying no to prom. So I'm like, yeah, let's figure out a way to get some money saved if your parents aren't available to help. And maybe that's working a little extra maybe that's not going out to the big nice dinner maybe you skip one of the things that night i don't know i don't know how much prom tickets cost these days but what do i know maybe drive your own

car oh wait i didn't have one maybe drive your dad's car instead of getting a limo that's what i was thinking about the limo thing oh i know i was like oh then i'd said that yeah uh it's your dad's car but that's what we used to do back in the day when the dinosaurs roamed the earth but when you walk through that process jack what you're experiencing at 18 it's kind of the same life in a sense obviously it's not prom that you're going to experience at 28 38 and in your whole life and so learning how to be diligent with putting money away and then prioritizing when things do come up to say, okay, do I have the money or do I not? And so it's all about really at that point making choices. But Jack, your overall financial picture,

you're a hard worker. You're making 1200 bucks a month as a high schooler, which is amazing. And you're gonna be able to make a lot more this summer when you don't have school. College is free, you're living at home, so're there's no expenses so as you continue just to save so i would say throughout community college your goal needs to be put as much money away as possible because when you graduate from school then you're going to have this expensive transition

honestly into the real world maybe that's moving cities, that might be, you know, taking on a job, renting an apartment or a house for the first time. So having cash available for you when you graduate college, I think is going to be your number one goal. But expenses and stuff, you should be able to cash flow all that with working. Hey guys, the Building Wealth event is going to be in Salt Lake City in less than three weeks. If you've reached your enough is enough moment i'm sick and tired of being sick and tired uh hey we're here to help or maybe you just want to come hang out with the tribe the ramsey tribe we'd love to have you there's a few a few tickets left we'll be there april the 24th rachel cruz george campbell jade

warshaw and i we're going to give you the proven plan to get out of debt save money be outrageously generous but most of all how to build wealth in 2023 and we're ready to dive in some of the hot topics everybody's talking about like inflation and investing and interest rates all this stuff and get your tickets now at ramsey solutions.com we'll also be in anaheim california on may the 2nd with ken coleman dr John Deloney, and Jade Warshaw. That event is almost sold out. There's about like 62 tickets left. So they're only $49 apiece.

RamseySolutions.com slash events. Anaheim, Salt Lake. See you soon. Rachel Cruz, Ramsey personality, is my co-host today number one best-selling author open phones here at 888-825-5225 so joining us for a segment here to hang out my good friend damon john from shark take hey damon how are you i'm well how you doing better than i deserve sir thank you for hanging out with us. So I got a call the other day from Damon, and he said,

I've got a book that just hit number one. I want to talk about it. And I got the book, and I said, yes, we want to talk about it. It's a kid's book, Little Damon Learns to Earn. Now, I got to say, Little Damon, you were a better-looking guy when you had that hair on top, man. That's pretty good. I have to cover the bald Damon, you were a better looking guy when you had that hair on top, man. That's pretty good. I have to cover the ball spot with one of my new hats.

I love the hat. Excellent. Okay. Now, I read the book, Little Damon Learns to Earn, a few minutes ago, and I kind of remember this story from somewhere. It looks familiar. It does. It does. It does. It looks like a little Damon who learned to earn,

but he was probably about 28 years old. And after he earned it, he almost went bankrupt after he had $10 million in the bank. A little operation called FUBU that made you who you are, right? That is right. But let's really open up. But I didn't call you initially to tell you about the book. I called and said, hey, I need some advice, Dave, because, you know, I know you've been doing this for quite some time in this space.

And you really can help me. And your advice was, come on the show, man. Let me share what you're doing with the public, man. And so I appreciate you for what you've been already doing. And I'm just finding out how people don't care about politics or anything else when it comes to the future of any and all of our children in this great country. So this is one thing we can all agree on. Amen. So number one kid, bestselling kids book, Little Damon Learns to Earn. Rachel, you got to take this home, read it to the grandkids. I know. I know. This is so, so great. Okay. So what was it like for you? What was like the motivation to write the kid's book? Because, you know, you can write any kind of book,

but for you, writing a kid's book, that's a special thing. It is, you know, and I have, thank God, I've been graced and blessed with three New York Times bestsellers for adults. And, you know, I'm always asked to do that. I'm dyslexic. It's cool. And sometimes the adults, we're all stuck in our own ways sometimes or whatever the case is. But I have a little beautiful new girl in my life.

My oldest daughters are 29 and 24. My idea of teaching my oldest daughter's financial intelligence at the time, I didn't have much of it. I said to them that you want a new car, you go work really hard and I'll match the money you have and get you a new car. That wasn't teaching them financial intelligence. That was teaching them how to work hard. And this little girl, I realized we have lost our national heroes after the kids are five years old and they don't

have a Peppa Pig to watch anymore. They don't have what we grew up with, an electric company and Mr. Rogers and Bob or Steve Ross, whatever the name, and even my children, Steve from Blue's Clues. So there are no national heroes. They're watching a bunch of children on other families. Nothing wrong with this, but they're just watching people play with toys and unboxing and they're not caring

about making what's in the box. They want to see what they're making outside the box. So I wanted to come up with something where I connect with my little girl, teach her the process and the idea of entrepreneurship at a very young age. And I was tired of reading books to her about princesses and ponies and telling her, baby, I promise if you wait one day, there's going to be a prince to come grab you with a glass slipper or, you know, I don't know. Yeah. Find you in a tower and you better not live with seven dwarfs.

I want her to create her own glass slipper factory or store. The prince comes in and says, who owns all this? I need to meet her. You know, the teaching financial literacy and teaching entrepreneurship are two of the lost things, for sure, in our high schools, in our homes. And so I'm really, really proud of this book because it's all about little Damon. He goes on a journey of learning to earn. And, oh, by the way, he didn't go work at fast food and gripe about what they pay. He went and started a business.

And that's the beautiful part, right? We show there, you know, so the beautiful part about this is, like you said, you read it a couple of minutes ago. You can read it like this. It's for kids 5 to 10 years old, parents and kids connecting together. You read it. When you read to a child, you read it once every month. You know, they want to read all the great books once every month.

So it's a way to casually engage them. You know, when we tell our kids, hey, don't lie. Remember what happened to the boy who cried wolf? Well, now we can say, hey, you want to earn that? What did little Damon and his crew do? But this is what I'm going to be calling my life legacy. It's not about this book. It's about me heading down this journey where I want to join the Dave Ramsey of the world and get other people in other states and other celebrities, whatever, to talk about this and to bring this to our educational base and our teachers and create this as a mandate in schools. And by the time I'm gone, I want my little daughters to say, my daddy started the conversation along with some other great people about how we have to change this country's

trajectory and stop becoming a country of renters and a country of owners and really have the American dream. Amen. Amen. Know how to leave the cave, kill something, and drag it home. It's good stuff. So when you read through this, I mean, as I said, I've been through it, but when you wrote it, when the parents read through it with their kid, what is it you hope that the kid will come away with? I'm hoping the kid comes away with the fact that they have a skill or they have something they love and that anything that they buy, they can have can be a benefit to them and not just one person benefits. Everybody benefits simultaneously. And that is what entrepreneurship is about.

And that's what I want them to take away from it. And I want their minds to open up as they are growing up going, wait a minute. I can actually do that. I can get paid for what I love to do. So, you know, the school system right now is back like it was 80 years ago. We were in the industrial age. They taught us, you know, how to build ships because they taught us to trade or how to be a great employee. But today, if you know it as I do, if you don't teach them how money works and then at 17 years old they can acquire six to seven hundred thousand dollars worth of student debt that they aren't going to pay off into their 50s well then you create it in a country of people who learn to

live off of debt and i'm not talking about good debt i'm talking about bad debt amen damon john of shark tank and fubu fame the new book is a children's book little damon so good and uh you know one of the things i loved about this from an entrepreneurial standpoint is it's not just he learned to open his own business but he hired his friends yeah he built a leadership team already mean, he built a production team and was delegating and delegating their own stuff out to them. It was very cool. It was resourcefulness because like you said, Damon, I'm like, it's like, just look in your sphere and what you have around you, who's around you, what's around you, what's inside of you and use all of that for the good of your community. And then you can make money while doing that as well. So all of that.

You know, and I can naturally do it. Nobody just puts it in a format for them because, you know, when we were growing up, our lemonade stand was as big as anybody who passed the, you know, past the block,

you know, the kids lemonade stand today is as big as the entire world. Once they push a button on this thing. So yeah, we were always doing it and our kids do it now, but we just haven't formalized and show them that, by the way, there is a path to doing this forever for yourself and your community and having fun and making money and creating change. Yeah. And the beautiful thing

is you're helping people and they give you, as my friend Rabbi Lappin says, they give you certificates of appreciation with president's faces on them yeah that's what happens you know i'm having so much of a blast doing this you know you know i listen i'm wearing this crazy hat and the reason why i say i wear it is because the kids don't care about my ten thousand dollar tom ford suit but when i wear this hat and we all know that children are now exiting their parents homes so 30s i tell them they go hey you're gonna create magic yeah i'm gonna show you how to disappear out of your parents home it's funny i'm gonna show you how to make one dollar into three dollars that's what i'm gonna do i'm gonna show you some magic show you some it's a dad blame

magician who knew oh well we got to spend a little time with damon he was down uh back in 2020 spoke for us at an entree leadership event and then we got to have dinner at the house, a bunch of us together, and hang out. I had a great evening, and it's an honor to call you a friend. I'm proud of you. It's a good book. Little Damon Learns to Earn. Damon John, ladies and gentlemen, thanks for stopping by, my friend. Thank you always for the support. Thank you for what you're doing for our children and our future and this country. Thank you thank you everybody rachel cruz ramsey personality co-host of the podcast that is vastly popular these days called smart money happy hour she and george campbell do that you guys ought to check it out it's uh where culture is meets buttermilk no not cultured buttermilk what

is it what what pop culture pop current events and money okay there we go you don't even know about cultured buttermilk do you no i literally have no idea what you're talking about that's perfect that's exactly why i did that okay hey in the lobby of ramsey solutions on the debt-free stage. Wow. Evan and Laurie are with us. Hey, guys, how are you? Better than we deserve. Do y'all know what cultured buttermilk is? I do. Oh, man, really? I'm from West Texas. Evan, do you?

She's from Tennessee. Okay, good. We got half and half. Me and Evan. We're running a 50% here on the cultured buttermilk. Important people want to know these things. Hey, guys, so what part of West Texas? Where are you from well we live in dallas now near dallas okay first go and how much debt did you pay off 145 000 very cool how long did that take 27 months all right and your range of income during that two years plus we started at 125 and ended up at 180 excellent excellent what do y' all do for a living?

I'm a licensed professional counselor. I'm an engineer in oil and gas. Oh, yeah. Okay. So who got the big bump during this time? I got a new job, and he got several promotions. Both of you then? Yeah. Okay.

That's the way it works, isn't it? All right. Good. Good. What kind of debt was the $145,000? Everything. Everything. The first thing we paid off was my wedding ring.

Then we had credit cards, student loan, cars. We have a nine-month-old baby, so she bumped that up for us in June. She's not going to get repoed now. Got to pay it off. All right. Wow, y'all were like normal. Yeah. How long have you been married?

Almost three years. We got married May 2020, right in the height of the pandemic. Yeah, you did. Yeah, you did. Why not? We actually eloped in May of 2020. And then we- Where did you go where humans were running around at that time?

We just went to a lake near us with our parents. There weren't any humans. Good. I like that. We went ahead and had our big party, too, and we would not advise that. If you're already married, just go be married. Don't get $20,000 more of debt. Oh, there you go.

Yes. For like the reception that you did later yes then so not long after that we look up and you say we're gonna do something different we're gonna do this ramsey thing what did you do what happens what happened yeah we got home from our extravagant wedding and our extravagant honeymoon um you know because we're from texas everything's bigger in texas and uh we looked at our bank account and said, well, our money's gone now. We spent it all on our wedding and our honeymoon.

So we decided, like, what are we going to do? And she had been kind of nudging me about this Ramsey thing. I was like, oh, I don't need Dave Ramsey. I'm not broke. I'm an engineer in oil and gas. And so then, like, one late night, I was, like, trying to do the budget in my head, couldn't figure it out.

So then I was like, I'm going to Google this Dave Ramsey. And I was like, oh ramsey and i was like okay like this makes sense like this math adds up one plus one equals two and so after that we kind of just took off running sort of sort of yeah we started davish we were limping limping along yeah we started davish and then we got a financial coach uh jen parker shout to her she was awesome she got us through this thing um right after covid and everything she got us all the way through and and then we just kind of we had a baby and that was just like that was the last motivation that made us go hey that we we got to do this like we gotta do this for her yeah once the baby comes it turns it up yeah it got real now yeah real yeah somebody relies on you it's pretty our our goal was we want to be done with baby step two

before she takes her first step oh that's good i like it so you guys i mean looking at the numbers y'all did it y'all did it quick i mean i know you had a great income but you didn't you really felt the sacrifice so what was like the biggest things that you guys cut that you feel like really helped and then what were things that you added in that you were like, oh yeah, that everyone needs to do this to help them get out of debt? She made me sell my boat. Oh. She made me. In return, I sold my car.

Whoa. Y'all sold some stuff. Yeah, I was a 1099 employee when we started this. And Evan was very worried about what taxes was gonna look like. Everyone needs someone responsible in your life. Um, cause I was like, it's fine. Um, but we saved and saved and saved because we were scared of what income tax was going to look like. And, um, when that time came, we actually only

ended up paying a little bit and we had $8,500 left over. And, uh, we found a cream puff car um a 2007 ford edge sport for 85 000 8500 yeah 8500 yes i feel better already and uh so uh what did your sell for um we actually ended up having to pay um about 1800 but what did it sell for total what was the total price oh there's 22 22 000 of the 145 what the boat sell for uh 12 5 okay what kind of boat it was a bass boat okay all right so you'll get anything you want now later yeah oh yeah you i promise it was the deal i get a suburban he gets a boat there we go with cash yeah. I love it. Okay, so what was the hardest part? Because you guys had a baby in the middle of all of this. So what would you say, though, was like,

ooh, that was a tough thing? Whether it was a sacrifice or obviously having a baby, it's like, wow, that's a lot in the middle of this. I think for us, it was like, oh, we're young. We should be having fun. We should be going and seeing the world. But now it's like, now that we look back on it, it's like, wow, we would have just done stupid things if I went and saw the world.

And so instead, we just, now we're old, we can appreciate the world a little bit better. There you go. Yay. That's good. Live like no one else later. You can live and give like no one else. We also did rover dog sitting. So for me, this was the hardest part.

As Evan went to go see his family the weekend that we were doing christmas rover um and i was pregnant and i had 23 dogs in our house by myself and i was pregnant so he was only gone one night but he will never get to live that down i don't even want to think about it for the six thousand dollars in a week it was worth it. $6,000? Stop it. It was worth the sacrifice. Go Rover. People will pay you a lot of money to watch. Rover, come over. Oh, my gosh.

Wow. Well done, you guys. Yeah, that's a hard 24 hours, though. It was. That's ridiculous. Y'all have plans? How do you do that? Prepared me for motherhood.

Yeah, that's right. Yeah. And then some. Wow. Way to go. All right. Now, when your friends are looking at you and they thought you were crazy, how'd you keep going?

God, number one, for sure. Like when we were at the height of all our money, he was there. When we were at the bottom in the valley, he was there. And now that we're back, we're not on top of the mountain yet, but we're working back to the top of the mountain and he's right here with us.

Yeah. I think when you're a good steward of the money god gives you he gives you more money to be a good steward of that's what the bible says yeah when you're faithful in the little things you'll be given more to manage yeah yeah very well done good for you very good congratulations you guys and uh yeah that's that's impressive very impressive who was who was cheering you on from the sidelines um so i grew up with the dave ramsey ish life my parents are going to watch this and be ashamed of themselves but we did we did envelopes on and off my whole life so i knew what it was i just didn't know like is it really

that sustainable um so our parents have been both huge supporters. Jen Parker, our financial coach, she whipped us into shape. We actually got her because I was like, let's buy a house. Nevin was like, that's not what we're doing right now. I was like, but lots of people do it. Like, it's fine. So that's so great. And then we actually, our friend Hallie, who's here with us, it was great to have someone on this journey with us

who understood when we said, we can't, that's not in the budget. We can't do that. And then she would say the same thing, you know, like, I can't do that. It's not in my budget. Hey, we got the Live and Give bundle for you. That's the Baby Steps Millionaires book. You're on your way to being Baby Steps Millionaires, a total money makeover book, and a Financial Peace University membership.

So you can use them or give them away. They're there for you. Thanks for making the trip. And you brought little Eliza with you, and she is a happy kid. We've been laughing at her. She's laughing at everything over here. She's great.

And how old is Eliza? She's almost 10 months. All right. She's fun. And she's going to love the microphone. I like it. That's good. All right. Evan, Laurie, and Eliza? Oh, she's almost 10 months. All right. She's fun. And she's going to love the microphone. I like it. That's good. All right. Evan, Laurie and Eliza. Eliza, your life has been changed. Your family tree

has changed, kiddo, and you don't even know it. $145,000 paid off in 27 months. Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free! Yeah! Woo-hoo-hoo-hoo! two, one. We're dead free! Yeah! I love it!

This is the Ramsey Show. Our scripture of the day, 1 Corinthians 16, 13. Be on your guard. Stand firm in the faith, be courageous, be strong. Maya Angelou said, without courage, we cannot practice any other virtue with consistency. We can't be kind, true, merciful, generous, or honest. Very good. Like it. Rachel Cruz, Ramsey personality, is my co-host today john is with us in dallas texas hey john welcome to the ramsey show hey y'all thanks for having me sure what's up i'm just trying to figure out how much house my wife and i can afford if we plan on uh paying cash

wow good for you well obviously it's going to be limited about how much cash you have then. So let's start with that. What's the game plan? Well, we have in checking and savings accounts, we have about $500,000. And then in brokerage accounts and other investment accounts, we have about $2 million. And then we have a rental property as well that's about $400,000 that's paid off. So I guess ultimately what we're trying to figure out is how much can we afford without jeopardizing our future? Well, obviously you've done a lot of wonderful things. Congratulations. You know, a $3 million net worth. How old are you? I'm 29 and my wife is 26. Wow. Where'd all this money come from? Mostly, unfortunately, when my wife's mother passed away,

a large chunk of it was an inheritance. So that's where a majority of that came from. Okay. All right. Well, I'm sorry for your loss. And so now you've got this responsibility to be honoring of that legacy, right? That's why you're asking a wise question like you're asking. Okay. So a rule of thumb in general as we deal with wealthy people, and you are now officially in that category,

the larger your net worth, the smaller the percentage of your net worth would be in your personal residence. Let me give you an extreme example. Let's say you had a $100 your net worth would be in your personal residence let me give you an extreme example let's say you had a hundred million dollar net worth if you bought a five million dollar house it would only be five percent right but if you had a ten million dollar net worth and you bought a five million dollar house it'd be 50 so you wouldn't do you wouldn't do that okay as an example so the the larger your net worth the smaller it should be so if you have a small net worth like much smaller than yours like say you had a a one million dollar net worth and if you wouldn't even want 50 in that if you could keep

from it okay it's not the end of the world but um so we don't want to go north of 50 i can't think of a situation where i would go north of 50 in your personal residence um and so you know that that limits you so that that gives us a number to start with say a million and a half okay then i start scaling back from that because your personal residence while it does go up in value does not create an income the other investments create income. And the more you move from the brokerage that's invested in mutual funds into the house, every dollar of that becomes dormant when you move it into the house, or virtually dormant. You see what I'm saying? Yes, sir.

And so I don't want to put you in a $200,000 house either, but somewhere south of a million range, what were you all thinking? Well, it, you know, somewhere around there, we're also in the middle of a life decision. The state that we're originally from is a lot more expensive than Texas and family is there. And with my wife just graduating, we're trying to figure out whether we want to be here or there. So, you know, if we were to go back there for what we're trying to look for, I would imagine it would be in the million dollar range. And then here in Texas, something comparable, probably between 700 to 800,000 is my rough guess.

Yeah, that sounds fair. I don't think any of those are going to fall in the dumb category. What's your household income going to be with her graduating? With her graduating uh with her graduating it could be anywhere from 250 to 300 000 a year depending on the starting salary that she gets okay all right uh wow what what does she do what is she going to be doing um a physician assistant okay that's great you guys are in a great position, John, which is awesome. And the hard thing is, too, comparing real estate from Dallas to wherever else you're comparing. Is it California, New York? Colorado.

Colorado. Okay. The math still doesn't change, right? So the percentage, I just don't want you guys think justifying, well, this is a more expensive area so we we have to be we have to spend more for some reason right and you start justifying a crazy purchase I don't think you're going to but always just be aware of that because it can be easy just to say well what we what the house we would have had in Dallas if we have that here it's going to cost this much and you just kind of make it this this equal thing where it's not right you have to plug in that math so just be wary of that when you guys are shopping if you guys choose to go to colorado don't justify well these are just more higher prices so let's go a million and a half you're right and and do something that you regret yeah i think you set

your budget and then you work into that but the 700 to million none of those numbers concern me i think they're all fine. Okay. And I kind of backed into that. You were with me as I was discussing it with myself, okay? Okay. You heard me walk through that, right? Yes, sir. And so the idea being then that you've got a couple of million dollars minimum

that's going to be generating income while you live in a million dollar or less house and you're going to have no payments anywhere in your world ever you have to swear to that and and you have a you know 253 thousand dollar income and so now you're in you're fully funding 401ks and roth IRAs so you're going to build several million tens of millions of well dollars of wealth with your income aside from this inheritance uh within a decade or two okay if you'll just if you'll just stay in control here and whatever you do you pay cash for it and uh you know uh and you know, and, you know, and have, make sure that you're allocating some percentage of your life to enjoy some of this money, to be generous with some of this money, and always to be investing some of this money. You need to be doing all three all the time. Most of us struggle with

leaning too heavily on one of those or the other. And I don't think you're going to, but just watch for that. Just always be. We even teach children this. Parents, when they're teaching their children, teach them to enjoy the money. That's wise spending. And buy some things that are nice. You have $3 million. That's okay.

Have a decent trip or two here or there. You need to do that. You've got $3 million. You make $300,000 a year. That's okay. Have a decent trip or two here or there. You need to do that. You've got $3 million. You make $300,000 a year. That's okay. But be outrageously generous. It's the most fun you'll ever have with money. Look for generosity opportunities and grow that muscle.

And then be steadily, regularly, consistently month in and month out. Automatic draft from your checking account. Automatic draft out of your paycheck going going into your 401k be an investor be doing all of that you're going to be just fine man they're really yeah it's well done john i mean that's that's incredible and just the diligence too of asking these questions i think is so so encouraging so i'm excited for you guys and i always ask myself too since some of this came from, you know, grandma or mom, you know, what is honoring their legacy? What's honoring their memory with this money? And so if I, you know, am I doing something that helps me kind of check myself if I'm being a little childish or irresponsible or out of control or something?

Is that making mom in heaven smile when i do this with the money and uh you know you don't want to like be guilt tripping yourself i'm that's not what i'm talking about but it just kind of checks you and says okay that's out of control but if you bought a nice car would she be smiling that was reasonable yeah she would be especially for her grandkids running around in it you know that kind of stuff yeah well i think it's interesting though because people that work the baby steps a lot of the time we hear oh my gosh we got on baby step seven where they are and it's hard for them to spend it's hard for them to go back to that muscle of enjoying their money um i feel like that's a that's a consistent call we get

or even through baby steps four through six and when people kind of get out of that intense phase of the part that yeah you're you're good like this is the reason you did stuff so honestly even allocating and forcing yourself to do the things that are uncomfortable so whether that's say that's whether that's spending have an amount of money that you're like okay we have to practice spending like we for some people that's really hard enjoying yeah and then for some people it's saving and it's like having this number that even if it's not your natural bent you still do it over and over and over again so putting it down on paper and be intentional with it is always really helpful good stuff good stuff well done well that about puts this particular hour in the books rachel good show today this hour in the books we'll be back with you before you know it in the meantime remember there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus.

Hey, it's Rachel Cruz. If you like what you heard in this episode and want to know more about getting started on the Ramsey baby steps, go to ramsaysolutions.com and click the Get Started button. We'll help you figure out the best next step for you based on your specific situation. That's ramsaysolutions.com and click Get Started.