The Ramsey Show - App - How Do My Husband and I Combine Accounts? (Hour 1)

Episode Date: May 18, 2021

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🎵 Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host. Anthony O'Neill, Ramsey personality, number one best-selling author, is my co-host today as we answer your questions about your life and your money. It's a free call at 888-825-5225, and some say the advice is worth exactly what you pay for it. Jeff is with us in Birmingham.

Hey, Jeff, how are you? I'm doing well, Dave. How are you? Better than I deserve. What's up in your world? So my wife and I are currently on baby step three. We have right at three months of expenses saved up. We have a potential move on our hands.

I've got a job opportunity potentially coming up in April and May. And we also, she has a 20-year-old car we're looking to replace. And we just found out two weeks ago she is expecting our first child. Yay! Yeah, we're very excited, but we're just curious, what is your advice on the next step? Should we begin Baby Step 4 yet? Should we hold off and start saving for those things? What should we do?

Wow. Well, I mean, all three of them are predictable events, and so we should save in addition to an emergency fund because they're not really an emergency since they're predictable. Yeah, yeah, yeah, absolutely. How much do you think it would take you to move, Jeff? Is your job going to give you a moving allowance? It potentially will, but I don't know that exact figure yet.

So there is some cash there that I might be able to get, I think, possibly up to about $1,000 in moving expenses. Sounds good. I wouldn't worry about the car right now. I heard you say you want to go ahead and replace that eventually. I'm not worrying about the car. If I am you, I am moving on to Baby Step 4, and I am starting the investment process. But also at the same time, like Dave said, I am going to be focusing on saving for the baby and then finding out if I am going to get some moving expenses for my company. If not, then yes, you may pause Baby Step 4 so you can go ahead and prepare to move because that is a priority.

That is a priority. That is a must. Yeah, when you add all three of these things together, what's going to come out of pocket for the move and out of pocket for the baby in particular, I'd want to make sure you have that in addition to your emergency fund before you move on to baby step four. But buying the car, I think you could probably save up four to do that, and that car will make it a little while. It didn't suddenly become old. It was already old three months ago before you got all these other pieces of information. Right. So, you know, you do want to, again, budget to pay cash for it so you don't end up with another stupid car payment, right? Absolutely.

Absolutely. Well, I will tell you, this is breaking news. We have not told anybody, so I'll just let you know you're the first one to know that we're expecting our first child. Oh, man. You should have told your parents before you told Anthony. Yeah, because I'm going to tell the whole world. I'm going to let you know right now.

He's told 21 million people, dude. That's it. Well, congratulations. We are planning to do that this weekend. It's just our schedules haven't allowed for it. Oh, no. You need to call them now. It's too late.

They've already heard it. Well, congratulations. We're so proud for call them now. It's too late. They've already heard it. Well, congratulations. We're so proud for you, man. That's awesome. And, yeah, so babies first, travel or move is second, and car is third. And depending on your household income, how quickly you could pile up enough money to take care of those. I might pause a little bit, and let's just get ready for a known situation. The beautiful thing is, is you're actually thinking about all this and doing it intentionally it's not happening to you you're

happening to it yes sir and dave i don't have any kids but you do so you know when i have my first child is it safe to say about five to ten grand is a good extra cushion for a baby it depends depends on what your insurance is going to cover. You know, health insurance with this company will cover the labor and delivery and what's his deductible and does he have an HSA and, you know, what's out of pocket. If you're paying cash for it, yeah, you would need that. Okay. You'd need 10K probably in today's world. And, you know, if you do not have insurance for labor and delivery, but most places do nowadays.

Yeah. And most policies do. And so, you know, what's your copay? What's your deductible? And you can calculate and get an estimate what your out-of-pocket is going to be, not what the total cost is, because that doesn't matter. Got you. What matters is what you're going to have to pay. And then you've got nine months to get ready for that, apparently.

Yes. Or eight. And then we've got $1,000 will not move you. Right. And so if you've got a $5,000 move, you've got another $4,000 there. Right. And so if you're making $100,000 a year, you can do this real quick. If you're making $50,000 a year, you're probably going to take you a few months to get ready for all of these things that are coming at you.

That's what you're facing. Way to go, man. Very cool. Sean is in Pittsburgh. Hey, Sean, that are coming at you. Yeah. That's what you're facing. Way to go, man. Very cool. Sean is in Pittsburgh. Hey, Sean, how are you? Hi, Dave. Thank you so much for taking my call. Sure.

How can we help? So four years ago, my wife and I bought a house in Colorado that turned out to be a big mistake because we couldn't afford it. We bought too much house. And we ended up selling it two years later, made about $30,000 profit off of it, used it to get rid of all the debt we had. And we moved up selling it two years later, made about 30 grand profit off of it, used it to sell, to get rid of all the debt we had. And we moved out to West Virginia, where I got a job as a youth pastor. And now that job has kind of ended, and we're looking at moving

back to Colorado. And I was wanting to ask you if it would be a good idea, our plan here, we're thinking about moving in with my parents that live right next to where we work in Colorado remotely right now. We're thinking about moving in with my parents and living there rent-free to save up a bunch of money for a little while and then buying a lot of land and then using that land as collateral to get a loan to build a house instead of buy one outright because of the market out there. The houses are so expensive. We're like, well, we could probably save a bunch of money and have tons of equity in the house already if we just built one instead of buy one.

So, Sean, let me ask you a couple of questions before Dave jumps in here. You said you're working remotely. So are you no longer pastoring and you're doing something else? Yeah, so the youth pastoring job I have here is I feel like God's calling me on to other things in Colorado to move back there. And so I put in my notice that I'll be leaving in July when my lease is up at our apartment here in West Virginia. And we're going to be moving back to Colorado. And what will you be doing and how much money will you all be making a year? So I will be pursuing a new job to like make more income. But right now, what we will be making, my wife and I together will be about 60 to 65 a year. Okay, cool. So here's my answer real quick before we go to our commercial break. No, I don't want you to go back in with your parents.

And I don't even want you to get a piece of land right now. You need to go ahead and just get a solid foundation. I would go rent an apartment and then follow the baby steps from there because it sounds like you don't have three months in your emergency fund already. Correct? Yeah. Yeah. So get an apartment, live below your means and go in the heck. And you said you paid off all your debt.

Get your three to six months set aside. Then you and your wife can start looking at land down the road. We don't need to move into your parents house. Skip over baby step three to go buy a house. You will be right back in the situation you are today. So get an apartment, get three months and you'll be straight. Yeah, that's exactly right. The the idea of buying a piece of land and building a house and having a bunch of instant equity, it's not going to work out that way. When you finish building a house, you're going to have almost in it what you would have had had you bought a house. That's what it costs to build a house. And so you don't get like a 50% discount because you

built from the ground up. It doesn't work that way. So, no, I think Anthony's right. You need to get a little apartment and get your jobs and your career solidified and then start gradually working your way back into homeownership at that point. That's going to be your best bet. Ever wondered how to save more money or pay off debt faster? What about the right way to invest? Listen, I've been there asking the same questions with no idea where to turn for answers. But here's the good news. You don't have to keep searching for answers.

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33789. Anthony O'Neill, Ramsey Personality, is my co-host today. I am Dave Ramsey, your host. This is The Ramsey Show. Open phones as we talk about your life and your money. It's a free call, 888-825-5225. Brian is in Arkansas. Hi, Brian.

Welcome to The Ramsey Show. How can we help? Thanks, Dave. Welcome back. You were missed, and thank you for all you and your team does. Well, thank you, Brian. Welcome to the Ramsey Show. How can we help? Thanks, Dave. Welcome back. You were missed, and thank you for all you and your team does. Well, thank you, sir. Yeah, I am 59 years old. I'm looking to retire in six years. I have a 401k, a Roth, and a traditional. I'm thinking about rolling my – it doesn't make sense to roll my traditional into a Roth.

I do have the cash to pay the taxes. Or should I take that cash and invest it in real estate? Well, neither one's a dumb thing. It's just a matter of preference which one you want to do. How much is in your Roth, or how much is in your traditional that you would convert? About $240,000. Okay. And so you're talking about, a 70 000 tax bill yes okay

huh and what what other uh nest egg do you have uh that is it uh i mean i have the cash uh other than my house which is paid for don't have any debt okay so here's the thing the longer you leave that alone after converting it to a roth the more sense it makes for it to be converted okay so if you convert it and start drawing down on it almost immediately i would be less likely to do that if you're going to convert it and never touch it for 10 15 20 years because you've got other things you're going to live on then i'd'd be more likely to do that. Do you own other investment real estate? No. Okay. And if you was to purchase real estate right now, Brian, would you pay cash for it or

using that 70 grand and put down? No, I would pay cash for it. How much cash are you sitting on? About $220,000. Okay. So what price range of real estate are you thinking about buying? Well, we're on a property where I'm at pretty tight because the university is around. And so they're going around $220,000 to $240,000. It just depends on what kind of deal you can get. So I'd use up most of your cash if you did that deal?

Yes. And if you do the $70,000 and it takes you out of that market, you'd have to do a different kind of rental property or wait a little while? Yeah, what I figured I would do if I went ahead and rolled the traditional into a Roth, I would then take the remaining money and put it into

a low-cost stock index fund. Until you had enough to buy a house. Correct. Now, what's your household income? How long is that going to be? Let's see. Right now, we're about $160,000, and that includes my wife,

and she's looking to retire in two years, and when she does, it will drop our income down to about $105,000. Yeah, but we're only talking about a year to get the money back, right? Yeah, yeah. Yeah, so if you do the Roth now, buy a house a year from now, right? That's possible. Depends, you know, if real estate keeps going up in this area like it has been, it would take it longer.

Yeah, but don't get real estate fever to the point that you start paying retail for stuff or you start chasing returns or something like that. You're going to end up paying too much. The best money on a real estate that you make is when you buy it, meaning you get a good deal when you buy it. That's what you're looking for. And so don't buy into the lie, oh, real estate's hot, real estate's hot. You know, oh, you can't get a good deal.

There's always a deal somewhere. You may have to poke around a little bit to find it, or you may have to put some paint on it later if you find it or something like that, but you'll find it, and especially if you're sitting there with cash and you're taking your time, and the deals are for the patient people. They're not for the ones that buy off on the, oh, well, all real estate, it's a college town, it's always high. So, yeah, that says you're getting ready to pay too much.

You don't want to pay too much. Now, when you pull it over to a Roth, how long before you draw out on it, Brian? Oh, I'm looking at six years. So you're less than 10 years before you start drawing on it, but you would just barely start at that point. And as you have the property, it would change that as well. Right, yeah. Well, with the rental property, I could start using the income from that right away.

That's one of the things I was looking at. You know what I'd do? I would start looking for deals right now, and if you can lay your hands on something, go ahead and do it that's really inexpensive, that's cheaper than you're thinking right now, and then use some of the rest of that and move some of the Roth money now and move some of it later. If you don't find a deal, a bargain I'm talking about, not just something that's freaking for sale that you like. Yeah. I'm talking about a bargain.

You're looking for – you want to make some of your neighbors a little upset with you so that means like if you're looking at a house of 222 30 you're looking at a house like 160 175 i'm making 180 offers on these 220s and find somebody who's a little more motivated to sell even though it's a quote hot college town so anyway something like that then that changes the equation yeah if you don't find a 180 purchase on a 220 or something like that then go ahead and make that roth move within six months and go and make that roth move uh and in the meantime you will have been saving up anyway so we're only talking about a year difference either way but the only way i would put the real estate ahead of the roth even though

it's only one year is uh if you got a bargain and so start poking around see if you can find that deal i think you can dave with patience look for something so start poking around and see if you can find that deal. I think you can, Dave, with patience. Look for something with a gutter hanging off, and you can put the gutter back up. They're not that hard to put up. So that's the kind of thing you're thinking of. I've owned thousands of pieces of real estate in my life. I used to flip for a living, and I currently own several hundred million dollars worth. I love, love, love real estate.

When I am buying real estate i am trying to find a deal yes because the old guy taught me when i was 20 something years old buying he said the money is made at the buy yeah meaning what you pay for it is the thing yeah money's made at the buy it's not location location location that establishes the value but the money is made at the buy so that's a good question susan's with us susan is in columbus ohio hi susan how are you i'm doing well thank you how are you better than i deserve and that's for sure what's up thanks so much for taking my call i have a tax slash investing question i am very new investing, so be patient with me.

I was completing my taxes for 2020 with TurboTax, and I got an alert that I had overfunded my Roth IRA, which I guess I just wasn't paying attention, and that I needed to move those funds in order to avoid a penalty. And I was wondering what you would suggest I would do to correct that before finishing my taxes. How much? Go ahead. I'm sorry. I'm sorry, Dave.

How much, Suzanne? It's not much. It's about $600. So it's not like the penalty is scaring me, but I'd like to avoid it if I can and then correct for the future. Okay. Let's make sure TurboTax is right because they're not always. So what did you put into the Roth? So I put in over $6,000 this year.

I got a raise, and I was doing a percentage of my income, and so this year I put it over. I see. Okay. And you're how old? I'm 32. Okay. And you're how old? I'm 32. Okay. Then you're fine. That is correct then. So any amount that you've overfunded, you just have to move it into another investment. Just get it out of that account. Yeah. Okay. There is

no penalty. You're fine. You caught it in time. You're not going to have anything. So just, you know, get in touch with whoever your wherever that investment is and say I need to move $600 out of here. It's overfunded. uh you can move it over to a money market you can move it into your checking account whatever just get it back out of there reverse the process that you use to overfund it and um and you know then you're not going to have any issue but you but they are right they've given you the correct advice that um uh that you you know you are limited to $6,000 of earned income.

And I'm assuming you had an earned income that high. So good stuff. Nice. Thanks for the call. Nice. I love it. Yeah, it's good that you're getting it done. It's good that that's going to that level.

Have you ever had that call before, Dave? I overfunded my investment accounts? It usually doesn't happen on an individual account. What can happen on, sometimes you'll hear it on a 401k, if you are a highly compensated employee with your company and the bottom 80% of the company does not participate in the 401k at a high enough level, they limit how much you can put in.

And so you back down and you can have overfunded your 401k because of the highly compensated rule. That happens a lot more often than this does because usually if you're doing an IRA, it's set up on a flat thing. It's $6,500 a month coming out rather than a percentage. Yes. This is the Ramsey Solutions on the Debt Free Stage, Eric and Alicia are with us. Welcome, guys. How are you?

We're awesome, Dave. We're blessed. Good to have you. Where do you guys live? Ocala, Florida. Oh, cool. And welcome to Nashville. How much debt have you paid off? About $379,000. Ho, ho! How long did this take just over eight years wow very good and your range of income during that time we started only 36 000 we ended up around 150 someone that range wow what do y'all do for a living well right now we're in real estate i'm in real estate um and

alicia is a work-at-home mom very cool very cool so i'm guessing with that amount of money that length of time you paid off your house. Yes. We have a paid-for house, Dave. I am looking at weird people. That's right. That's right. I love it. Well done.

What's this house worth? About $300,000. Very cool. Very cool. You have a paid-for house. Yes. Absolutely. You have a paid-for house.

Yes. That's so cool, y'all. It is. That is so cool. Well, tell us the story. What happened? I love your t-shirts by the way the turtle always wins always wins in the shell he's got a paid for in full oh a paid for shell

all right i got it i get it now all right very neat so um when 2012 we had a financial crisis and uh i was a teacher at the time and um you had a low income, and I always had the conviction that Alicia would work from home and have our kids at home. And we had – Alicia had a miscarriage twice, so we had all the expenses of a baby twice with no baby. And so we had medical bills piling up. We had credit card debt. We had car debt. We had a mortgage. I mean, just everything you can think of.

And I was actually taking a class from a co-worker and she kept saying dave ramsey this and dave ramsey that i think who the heck is this dave ramsey guy and and uh and what's his problem and so i went up to her i said is there a book i need to get or something she said you've got to get the total money makeover so i drove straight to the christian bookstore i bought the total money makeover and it was like somebody throwing me a life preserver while I was drowning. Wow.

It was life-changing, for sure. Absolutely. And then Alicia read it. Yeah. So I'll be honest. I'll give me a novel. I'll read that. Yeah.

And I said, I looked at your book, and I'll be honest. I was like, eh, not sure if I want to read this. But I started, and I loved it. You know, I loved it, and I tell every person that, because we give these books out like candy to whoever we can. Thank you. And so whenever I tell people, you know, they look at the cover,

and they're like, oh, you know, I don't really want to read this kind of book. But what got me are the testimonies. I love just seeing, that was my favorite part, just seeing the testimonies of the people that were there. And that's why today is such a big day for us and exciting because i was waiting for this day when i can be a part of those testimonies and be on the other side and say we're here we did it and you can do it too wow you often ask who your biggest cheerleaders are and lisha says all the time you guys were we didn't have a lot of people. You know that dog look? The confused

German Shepherd? We get that look a lot because we're battling up against the culture and it's no small thing. But you guys have been such an encouragement to us. The podcast, the books, the YouTube show. And there's actually a picture in the pictures that we sent because we

flipped houses in this journey and every time we'd flip a house it helped us move forward. And one of those in the pictures that we sent because we uh we flipped houses and in this journey and um every time we'd flip a house it helped us move forward and one of those i mean we were on the third house we're packing boxes and i'm like we're doing this again oh no and so i was like um i needed some kind of encouragement because i was tired so on the tv we put on um the youtube show and that that's the picture right there and And look what it says up there. It says, being debt-free is worth the sacrifice.

And that was the moment. I was packing. Wow. That podcast, just having you on, got me through that time. Wow. Because I was like,

we can do this, and it's going to be worth it. If you live like no one else later, you can live and give like no one else. God's been so faithful. House and everything. Yes, and another thing that was really encouraging was way, this was back

at podcast, we listened way a while ago, is you talked about you sat down with a millionaire and you asked him for a book and a reference and he said that you gave him the Tortoise and the Hare. He gave you the Tortoise and the hare book and um and that has really been our mantra and and just kind of what's got us through because it is gazelle intensity and when you think gazelle you think fast right but it's not always fast sometimes you got to just you know the turtle and you're still going

we're still going to do this and not give up because you see all these other people and all you know everything going on around you and people want you to spend and people want you to, you know, do, do, um, live, live like everyone else. But, um, it was just the turtle. We always kept that. The turtle always wins. We're going to get there. And, um, and, and God was faithful and he brings those, what you say, like those, um,

movable sidewalks. It's like that focus intensity, that gazelle intensity that you talk about so much it's like i love that analogy if you start moving in the right direction and it's like god puts that moving sidewalk under you and somehow you get there faster you know and there's power in those principles i mean do not become do not be weary in doing good because in due time you will reap a harvest if you don't give up and um and so that's that's kind of our mantra. It's a marathon and not a sprint. That's why we made the shirts because, you know,

you got to have that big why and you got to have big goals. And, you know, you just got to keep focused and have that intensity along the way. So I'm curious, though, over eight years, to the people listening right now, they're like, yo, that's a long time. And they sound like it was so easy. But I know that it wasn't.

I'm curious for the people listening, what was the hardest thing that you all had to endure? And how did you all get through that season? I think a lot of it, we had an income problem. You know, you often talk about, you know, we had a spending problem, but we also had an income problem. And I think that was just all the hard work, all the hustle. I mean, we sold cars for a while. We sold dog treats. I got licensed to sell life insurance.

We gave music lessons. And I finally settled on real estate. And now Alicia's running a cleaning business, a new construction cleaning business. But it was just all that hard work, hustle. We worked day and night. And you can't keep that up forever. You know, at some point, like you guys talk about, you've got to let off the gas a little bit. You know, but if you've got a big enough why and you've got those goals ahead of you,

you can force yourself to do quite a bit. And we just hustled. And that was probably the hardest part is just the sacrifices that you make along the way. You know, not just not eating out and those kinds of things, but just your time, just working all the time. And, um, I would have to say that that's probably it, but we had a lot of encouragement. Um, I mean, even my son, he started a business along the way. He was six years old and he was inspired by all the hustling we were doing that he wanted to start a business. I love it. So, you know, at six years old, he's starting this little business.

That's cool. I remember at one point, the only $20 that he had, he brought it to us. He said, Daddy, I want to give this to you as part of the Get Out of Debt Fund. Wow. Hey, let's get them in the shot for the debt-free stream. What are their names and ages? Noah, and he's 11, almost going to turn 12. All right. He wants everyone to know that

and Mercy is 7 we are proud of you guys congratulations how does it feel now that you're there yeah how do you feel it's nice being out of debt and not having another another bill every month I think he's going to make it

I think so too that's so cool well done all right it's eric and ashley happens all the time i'm sorry i can't get it out alicia noah and mercy from ocala florida they paid off their house and everything 37,000 in eight years, making $36,000 to $150,000. Count it down. Let's hear a debt-free scream. Three, two, one. Glory to God, we're debt-free!

This is how it's done. Wow! That's funny.'s done. Wow. Woo-hoo-hoo. That's funny. Eight years. Yes. But they don't owe anything. Nothing. Nothing.

I mean, no mortgage. Those kids' lives are changed. Their grandkids' lives are changed. Absolutely. Their grandkids' grandkids' lives are changed. Absolutely. And when they got done screaming, I watched Noah turn around and hug his father. That just means his life and

the little one has changed yeah that's exactly how it works well done you guys well done we're so proud of you wow excellent excellent stuff wow this is the ramsey show Thank you. Anthony O'Neill, Ramsey personality, is my co-host today. This is the Ramsey Show. I'm your host, Dave Ramsey. Open phones at 888-825-5225. Terry is in Jacksonville, Florida. Hi, Terry. How are you?

Hi, Dave. I'm great. Thank you for asking. Sure. How can we help? Well, I'm a 73-year-old married individual. This year, next month, we'll make it 53 years. Wow.

Yeah. Yeah. Blessed by God, beyond measure. I had two marvelous careers, again, directed by God, a 21-year career in the Navy, and then a 20-year

career in aviation, well, education. And I currently own my own home. I have actually followed your advice for about 40 years. So my wife and I have tried to live debt-free almost our whole married lives. But I own my own home, debt-free of that. But I have a rental home that my son has been renting. And I purchased, just recently purchased another rental home that he's going to be living in. It's in a school district, actually, where I was the principal of the school, so we wanted

our granddaughter to attend that same school. So my question is, the home that he's currently living in, I owe about $91,500 on it. It's probably a sale value of about, I don't know, $120,000, $125,000. I'm wondering, should I just sell that thing or should I rent it? Current mortgage is $659,000 and I can probably rent it for $1,200. Okay. Is your son paying you market rent on the other property? On the one that he's currently living in? Well, the one he's moving into, I guess.

Yeah, he's going to be paying the mortgage on that. Why didn't he just buy a house? Well, he's got his own business, and he couldn't qualify for the home. And as you know, houses down here, how we've been looking in that area, like I said, we wanted our granddaughter to go to school, but I'm their principal. And so there were hardly any houses on the market. When that one came available, it was a nice house.

And actually, the day it went up for sale, we made an offer on it. Well, let's reverse engineer your question then. Sure. If you had $40,000 sitting in the middle of your kitchen table, or $30,000, and you did not own the property that he's moving out of that you're asking me about, would you go buy it? It's just $40,000 to do whatever with? No, I'm saying $40,000 because that's your down payment,

and then you've got a $90,000 mortgage, right? Oh, I see what you're saying. Because if you sell it, it's going to put $30,000 in the middle of your kitchen table. Right, but I'm going to have to pay capital gains on that, I'm sure. Yeah, there'll be a little, but it won't be. Have you been depreciating the property? Yes, sir. For how many years?

Oh, about 11. Yeah, you'll have some capital gains that are pretty substantial then. So it sounded, the way you worded it, it sounded like you like the property and you think it'd be good to own it. I don't see a problem with you owning it. I do want you to go back to your original philosophy and let's get these properties paid off. Do you have any cash, Terry, to pay them off? I'd have

to liquidate some mutual funds. How much do you have in mutual funds? Well, I've got two IRAs in a mutual fund. I've got about $310,000. Okay. What other nest egg do you have other than that? I've got a stock in a company that Square Incorporated that I bought at like $9 a share. Last time I looked, it was like $4 a share. What's it worth? What's your total portfolio worth?

Oh, probably not counting the house. No, I'm saying that stock. What's that stock with the value of that account? Oh, probably about $35,000. Okay. I would use that towards that mortgage, and let's get that mortgage paid off as quick as you can with that other $60,000. I would not liquidate your mutual funds. I'd just start doing it out of the budget and clean it up as fast as you can.

If you're going to keep it, let's have a plan to get it paid off. Otherwise, I'd sell it. Okay. Yeah, my only thought process with keeping it was, you know, where else can I invest the money and probably make about $400 a month net? Well, you're not making $400 a month because you're going to have expenses on that. You're going to have vacancy. You're going to have everything else. You're probably making $200 a month. Yeah.

So you're not, and it could end up actually being a cash drain as long as you leave that stupid debt on it. So the only way I would do it if I were in your shoes is get rid of the debts very soon, if not immediately. Yeah. And I would not use your $300,000 to do that. I would use $35, your 300 grand to do that i would use 35 000 stock to do that so um i don't know yeah i'm right there with you dave that's why i was asking and then too i don't really like the fact that he's renting the house out to his son at this mortgage in a neighborhood that the son can't afford to buy in. Exactly. That's a potential liability that's going to come back and bite you. Exactly.

So a boy child needs to get his own mortgage and get that thing paid off, get it out of your name as soon as possible too. Yeah. And so it's not just about where your kid goes to school. You don't go hundreds of thousands of dollars in debt to get a school district. Thank you for saying that, Dave. Yeah, that's not smart. Yeah, well, you're going to get bit.

Yeah. That's what's going to happen. And we're using the love of grandbaby to justify all this. Yeah. So, and I love my grandbabies. Absolutely. Absolutely. That's not the issue.

Absolutely. Open phones at 888-825-5225. Amy is in Muncie, Indiana. Hi, Amy. Welcome to the Ramsey Show. Hi. Hi. Thank you.

How are you? Sure. Better than I deserve. How can we help? Okay. My question is, my husband and I just opened a business together. It's so far been very successful. It's only been five weeks.

But we also still have our own business. I have one. he has one. My question is, how do we combine everything together and like pay bills out of one account? So like my business, I just use it for business only, and then I have a separate checking account that I pay for all of our house bills. He uses his business account for everything. And then our new account, I don't think we should use it at all because at this point we don't even know actually what we're making from it all right let's try this let's try this these are three separate businesses that operate independent

of each other correct correct okay each of those should have their own checking account yes and you should not do any personal business out of those checking accounts right then you should have a household then you should have a household account that is your home account and that's where you buy groceries and pay the light bill and eat and do all these other you know save for the kids college all these kinds of things that you're going to do the profits come out of the three checking accounts from the business to hold out some money for taxes so you don't get bit on your uh quarterly renew or your quarterly estimates and then roll the money into your personal account.

Both of your names ought to be on all of these accounts. Yes, both of our names is on all of them. Okay. But however, we've only been married a year and a half, and we still, I don't write anything out of his. He doesn't write anything out of mine. Even though our names are on all of them, we still use it like it's separate, and I think it's causing problems.

Yeah, you need to have a plan where you're all in agreement about all the money. Yeah. On how the businesses are run and how much money comes out of those businesses, what expenses those businesses are doing, and then when it comes home and it goes into that home account, you're certainly in agreement on everything there yeah and it sounds like you all are still separate a little bit i mean combine the mindset this is our businesses as a couple as a family i mean do things jointly not separately now what happens when i'm working with these entree

leadership guys is they'll use their business account to buy crap that they can't get away with if they bring the money home that's exactly what's going down right here tell it yeah you're not gonna buy that out of the personal accounts i'm just gonna sneak it that's my business over there yeah i don't think so bubba it's not how it works this is the ramsey show This is The Ramsey Show. Hey guys, this is Kelly, associate producer for The Ramsey Show. Did you know that over 16 million people listen to The Ramsey Show every week? And a lot of those people listen on one of our 600 plus radio stations across the country. To find a station near you, head to DaveRamsey.com slash show.