The Ramsey Show - App - How Do We Deal With Higher Interest Rates? (Hour 2)

Episode Date: September 14, 2023

Live from the headquarters of Ramsey Solutions, it's The Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. Thank you for joining us, America. Jade Warshaw, Ramsey personality, is my co-host today. Phil in Green Bay, Wisconsin, starts this hour. Hi, Phil. How are you?

Better than I should be, Dave. How about you? The same, sir. How can I help? Well, Dave, my question is my wife and I are looking at early retirement, and we've taken time over the last 30 plus years of being together, cutting corners, saving as we can, and really want to take time to, if we can, give back more. We do a bit of volunteering locally as well as nationally.

And with our kids growing and gone, I want to find out if you think we're in a position where we can not really join the fire crowd, but step into retirement. Okay, cool. So your house is paid for? Our house is paid for. Good for you. What's it worth? Four and a quarter. Good for you.

Cool. What's the rest of your nest egg look like? Currently, we've got about 2.2 in IRA and 401ks combined. We currently have an additional 300k that we've invested in bonds, government bonds currently that vest in October. Separately, we obviously aren't at the age. I'm currently going to be retiring. If we do at 60, my wife will be 57. I'm looking at social security deferring out at 62, it'd be like 23 for me. And at 67, 33, 50 approximately on the current schedules for me. My wife at 67 would be at 1900.

And we currently have a pension that if I took it early, which I'm looking at not doing, but it'd be about $1,200 a month. If I took it at $62, it would push out to about $16, and at $65, it'd be $2,200. And what do you guys need a month to live well? Well, that's a good question. We think that our current budget as we went through it, we're sitting at around $45,000 on a monthly to run our two properties. And we live comfortably, Dave. We've always made concessions and saved when we could. But yeah, we're thinking that's probably going to be what we're going to need to, you know, that doesn't include travel. Yeah, that's low. You need double that.

We're thinking that is the case, right? Yeah. I mean, you can survive on 45, but I want you to thrive. Okay. No, totally. That's why we've done what we've done. Yeah. So 2.2, were that invested in good mutual funds, and were you accessing it if it made 11.6%, which is what the stock market has averaged since it began, you know,

that'd be $250,000 a year. Right? Where we're at right now, that's kind of, yeah. So the other thing I forgot to mention is that we do currently have an emergency fund of $50K in savings. Yeah. It's in a high yield. But again, what we're kind of thinking is probably with the 4%

rule, thinking that too, there's probably going to be a little low. So I wanted to get your direction on, you know, if you think it's viable that we could pull the trigger. And if so, I think the 4% rule is absolute bull crap. It has nothing to do with anything. That's crap that people drew up on the internet. let's talk about the reality okay the reality is for the last 72 years the consumer price index is average 4.2 percent that is the measure of inflation under biden we had one year of 9.6 percent but the average inflation rate for the last 10 years is 2.3 percent okay so inflation if you average inflation at four that's fine okay that that's a four percent

rule you could count on. So in other words, your cost of living, your cost of buying a loaf of bread, buying electricity, gasoline for your car for the next 40 years from 60 to 100 is going to go up at about four percent a year. In the last 10 years, it would have gone up 2.3 percent a year in the last 10 years it would have gone up 2.3 percent a year average okay now if you do that and you've got it invested in just an s&p 500 which means you're just performing at the market level of 11 percent 11 minus 4 is 7 so mathematically if you pull 7 out of your account which you don't need to do you don't need the money okay right but if you if you pull seven out of your account, which you don't need to do, you don't need the money, okay? Right.

But if you pulled seven out of your account and left four in there, your account is going to grow by 4% a year. So it will grow by enough to where the next year, the 7% will cover the increased cost of goods. You build inflation into the system, and that system right there would run mathematically in perpetuation you would never use up your money so this idea that you can only pull off four percent's absolute hogwash okay and so you know now do you need to pull off more than four percent no but that's not a rule that's a rule some financial nerd came up with that is doubling down on hyper conservative and they're not using good sets of assumptions so i just call bs on that anyway not fussing at you but i get

this crap from these people all the time and occasionally i need to hit back so i just did okay now the uh so what would i do i would set up your accounts to draw 90,000 a year minus your pension minus your social security which probably is going to be you're going to pull off 60,000 so you're doubling your you're doubling your and so if you're pulling 60 grand off of two million you're pulling off three percent you follow me yeah no i do yep and then that two million still gonna keep growing right on no i follow you and i think we aren't planning to tap into that because again we've got the 300k that we you know rolled in that'll vest and mature in october and um that's kind of something we can fall back on we're thinking that we'll probably roll that back for another you know

if it maintains at five or above, just to have access to that. When you say fall back on, what do you mean by that? Why would it be a five or above? What are you talking about? Stock market? Well, no, I'm thinking that we, in the event that we would have some need for, because with our kids and stuff, we've, you know, obviously they're grown and gone and professionalized. But if we wanted to, for example a vacation for a winter in florida or whatever additional funds that we'd have beyond our original um you know 60 70 000 that you're

talking about after pension and social security if they follow it was just additional cash and we're thinking rather than the 300k though could be sitting in an investment it doesn't have to be a five percent yeah he could put it no i follow you that's why i said i don't want i don't want to deal with 5% numbers. 5% numbers are for short-term money. You make 5% on a high-yield savings account right now, and that's stuff you need to access in the next six months, not the next 16 years.

So you got enough money. You're not going to be fooling with your money, dude. You need to keep it all fully invested and just pull what you need to pull off the income out there. And you can use whichever source you want to use. I don't care. But I would be in good growth stock mutual funds that's what i am i'm 63 that's where my stuff is i haven't pulled a dime out it's all sitting in good growth stock mutual funds i'm not even pulling an income off of it because i'm still working yeah and so um you know the the

uh but the point being that that um you know you can count on, like this year, I mean, I don't even look at the S&P this week, but it was like 17% the last 12 months you would have made if you were on the standard and poor, which is the stock market. If you're invested in good mutual funds, while everybody's sitting around whining about the Biden economy and how horrible everything is and the interest rates are ridiculous and the housing markets have gone to crap and everybody's talking about all this stuff. Meanwhile, your freaking 401k went up 17%. Nobody ever talks about that. Yeah. Well, it's not good.

It's good news. Good news isn't broadcast. And by the way, if I were him, I would wait till he's 65 on that pension. He doesn't need the money, so he may as well wait so he can get more of it. As long as everybody's healthy, I would push off the pension and the social. As long as everybody's healthy. This is the Ramsey Show. Jade Warshaw, Ramsey personality, is my co-host today.

Open phones at 888-825-5225. Tarong is with us in West Palm Beach, Florida. Hey, Tarong, what's up? Hey, Mr. Ramsey, how are you doing today? Better than I deserve. How can we help? All right. So basically, I just turned 32 years old. I got married last year with my beautiful wife. She's amazing. This April, we decided to get our own house. Currently, we're living in it. We have a very traditional value where we live with our parents. But at the time that we couldn't find a house, she moved down here after we got married.

We decided to buy a house. The house won't be built until next year. So we spoke with the builder and the community that the new community complex is building that we purchased a house. The house with the closing and everything is going to be about $731,000. And we, me and my wife have, in my opinion, I would say we have a pretty good financial standpoint, but with this, a lot of this interest rates and a lot of things is like keep going up. It kind of like doubt to me. So what we decided on agreed upon was we're going to be putting about 275,

uh, down payment on the house. So she has a very good job. She's a nurse manager. Uh, she brings, uh, six figures in and I'm up,

uh, uh, I'm a, basically a financial advisor. Uh, I bring somewhere around six figures as well. Okay, so you have a $250,000 income or a $400,000 income? What kind of six figures are you talking about?

So she's a nurse manager. She brings about $115,000. Okay, what do you make? I make about $100,000. Right now, I looked it up. I'm on track to hit about $113,000. Okay, so $230,000. All right. And you have $200,000 saved or more. How much do you have saved? So, we're not going to put $275,000 until sometime next year, probably June or July of next year. Right now I have in my

investment account about $122,000. And obviously we're going to have a track. We have a plan in place where from now, the time that we booked on April until next year, we're going to be taking 90% of the income, putting it to the side for the house and you have no debt i will i i have i don't have that uh i uh i never went to the college or anything i pretty much work my whole life out and everything so uh this was like for me i i i've been uh watching your show and i've been like listening to how you give advice i've been following that okay so basically everything you can scrape together before the closing is a couple hundred grand you're going to put that as your down payment absolutely so

you're gonna have a five hundred thousand dollar mortgage with a two hundred and thirty thousand dollar income sounds good how can we help yep So basically like what scares me here is like where now my, me and my wife like talk about it to like, you know what, cause I keep track of all this interest rate, what we're at, are we doing well in number planning and everything where she and I are in like, we're in the age of early thirties. We're like, she wants to have like family planning, set aside something for kids like

college saving i'm not sure if we could like get all this covered within the boundary are you worried that you won't have it like once you get into this house payment you won't have enough margin to do the things that you want to do like have a family and you know just live life that's what you're saying yeah yeah so she's all about traveling i'm not fully all like all traveling and everything no you're a tightwad yeah look with what you just laid out for us you're well within the bounds we always say for the payment not to be more than 25 percent of your take-home pay you're doing are you doing this on a 15 year fixed that's the only other part of this discussion uh no it's gonna be 30 years it's going to be 15 that's that's where you need to that's yep you need to be on 15 year it's a lower interest rate to start with and also you need

to get a game plan where you have a house is going to be paid off someday and then yeah if you live on a written detailed budget that the two of you agree to you can close on this house and you should have plenty of margin to have a decent life and continue to invest on a 15-year fixed rate. And your income's going to continue to go up. Exactly. And if the interest rates drop in the future, refinance and get rid of a higher rate, because you could still be in a higher interest rate environment by next April. That's possible.

I'm hoping they'll come down by then. We will be in a presidential election year, and they have a tendency to go down in those years so but um no guarantee of that but uh yeah so if you end up closing in this seven eight percent world and then they drop drop to six we'll refinance it later but in the meantime dude take out a 15 you can do this you've got margin let me tell you what I hear, okay? I hear a financial guy who's really good with math, and you've converted that to worrying. Don't wring your hands. Plan, enjoy the ride.

Plan, enjoy the ride. But no plans ever come out exactly like you've got them projected 18 years into the future with your spreadsheet at 2 a.m you can't you go to sleep plan enjoy have peace it's gonna be okay you're gonna be fine eric is with us in richmond virginia hi eric welcome to the ramsey show hey dave and jade how are y' doing today? Better than we deserve. How can we help? Good. I am fired up. I just got married in May, my wife and I, and we just started Financial Peace University a couple of weeks ago. And so we started and we did step one. We're done with that. Good. But in step two, we're a little scared. Just having a $1,000 emergency fund there.

It's not enough. It's going to take us. Yeah. Yeah, it's not. It's scary. It's scary. It's supposed to be scary. Yeah.

What do we do if we have like a $5,000 pet bill or transmission bill? Pet bill? What's going to happen? Let me, let me break this down. I just talked about this last night. When you get to this stage that you're at, when you have a thousand dollars, and this is for everybody listening, not just Eric, it changes the way you think. Okay.

When you, before you had the thousand dollars, right. And you had a credit card or you had this fake emergency, this fake safety net there, right. If something happens, the dog gets sick, right. And the vet says, this fake safety net there, right? If something happens, the dog gets sick, right? And the vet says, it'll be $5,000. You just fork over the 5,000 because you're not thinking straight. You're thinking, oh, I'll put on my credit card or I'll do this. But when you have $1,000 and things like that come up, your brain starts working a lot more efficiently. You start becoming a lot more creative and you start realizing what's a need, what's a want. Can I be resourceful? Is there another way to go about this? And that's

the beauty of a thousand dollars. It's like when the dryer goes out before, when you had credit cards, it's like, well, I'll just go down to Lowe's and get me a new dryer. And let me get the newest, nicest model. Right. But when you have a thousand, you go, oh my gosh, my mother-in-law lives up the street. I'm going to go over there and dry the clothes for a little while until I can save up a couple thousand dollars. And then I'm going to go over there and dry the clothes for a little while until I can save up a couple thousand dollars. And then I'm going to go over here and I'm going to buy this one on Craigslist or I'm going to buy this one that's on sale at Home Depot. Right. Your brain starts working better and you start getting creative. And that's how this works.

How much debt do you guys have? Between student loans and credit cards, we're at about $88,000. And what's your household income? After taxes, we're a little over $100,000, like $102,000. Okay. All right. And how much do you owe in your car? I only owe $8,000, and my wife says that's $14,000.

Okay. And that's included in the $88,000? It is. Okay. All right. And so you're debt- in two years that's that's the plan and i've already gotten beans and rice and beans so you know here's what's the number of emergencies that happen over one thousand dollars in a two-year period of time is very very small if it comes up deal with it then but it's not going to come up okay and um uh and you'll be shocked and amazed my husband and i had a thousand dollar did you ever have a thing when

you're you're seven years that's what i'm saying did you go seven years with a thousand dollars well yeah i mean we'd use it if there was an emergency and build it back over it no what i mean how'd you if you had a 2000, what did you do? You just have to make it, you have to figure out a way to make it work and then stack up cash. You talk to the vet and go, Fluffy's, you know, we're going to do something else with Fluffy.

Oh, please. Yeah. By the way, set a limit ahead of time with the pets. Okay. And then there's, it decides for you. Yeah. I'm, yeah. They're, they're, I love my dog almost as much

as I love my kids, but they're a dog. They're not a kid. So we're going to have to keep this somewhat in perspective. I'm not trying to get all you pet people, all you fur people in my inbox here. You do have to set limits, though. Can you afford a pet? You might not be able to afford a pet.

This is The Ramsey Show. Jade Warshaw, Ramsey personality, is my co-host today in the lobby of Ramsey Solutions on the debt-free stage. Trampas and Jill are with us. Hi, guys. How are you? Hey, Dan. How are you? Welcome, welcome. Where do y'all live? Knoxville. Knoxville, Tennessee. And how much debt have you paid off just a little over 126 000 okay very good how long did this take 22 months good for you and your range of income during that time we went from 110 to a little over 210 very good good what do y'all do for a living uh i'm a deputy safeguards and security manager for a doe subcontractor at the oak ridge national lab oh Okay. And I take care of him. Ah.

He takes care of all of us, guarding the radioactive secrets, and you take care of him. It's a fair trade. Yeah. It's a fair trade. Very good. Very good. So what kind of debt was the $126,000? We had everything from fifth-wheel campers to motorcycles to cars to IRS.

No student debt or anything like that, but credit cards. Lots of toys. Lots of toys. Normal. So what happened? What happened 22 months ago? What was the wake-up? You did.

Uh-oh. How did I do that? Well, I mean, we never felt a pinch of being broke. We never understood being broke. We never had an aha moment because, you know, in my mind, we weren't broke. We had plenty of money. We made our payments each month. It all came in.

It all went out. We're okay. Yeah, I mean, everything's good. So I was actually starting to listen to your show on the way home from work, just trying to find some kind of entertainment, something besides music to listen to. So I come on, and you were going through one of the Dave rants, and you were just, I mean, hammering somebody. I'm like, this guy's pretty cool. I'm going to listen to him. He come on and you were going through one of the dave rants and you were just i mean hammering somebody i'm this guy's pretty cool i'm gonna i'm gonna listen to him he's fun

you know and uh so we were listening for more entertainment value than i was educational value at the time until he got mad at you yeah oh yeah and then i got personal yeah you did what did i step on you called me an idiot and a moron and a broke brother-in-law and a broke brother-in-law no i didn't well i told a friend of mine i said that day ramsay got he called me an idiot today and he said well did you talk to him i said no he was just on the air he's talking about you then not to you i said yeah yeah there you go okay talk about something you did all right what did you do that i was picking on well i mean everything i'm just what you said i'm the broke brother-in-law i'm the broke neighbor i'm i'm uh uh you know i was a moron with money you know i thought i told her i said you know we make too much money and and we're too smart for for this you know and like

i said i never what did y'all do then did you did you sell some of the toys uh we sold our camper but we were upside down in the camper so we sold it and still had to come up with thirty thousand dollars good lord yeah so then them things are how much of the 126 was the camper 30 no you said you had to come up with 30 you're upside down 30 yeah wow okay but i mean but you owed more than 30 on it yeah we had almost 90 on that's what i meant so of the 126 90 was the camper yes wow whoa okay so then you had to come up with a 30 and then what yeah that yeah that's a big move right there yeah okay so that one that was the whoa that was emotional when that left oh yeah yeah i mean we we took pictures of us with a guy driving off just waving at the camper on the way by and just you know go go go go go go go before i changed

my mind yeah yeah so what did it look like okay you're you're angry because dave's called you every name in the book and you're like you're like we have to get on board jill what did you say were you like yes i've been waiting for this moment or Or were you like, I'm not ready? Like, tell me more about that, getting on the same page. I said, what? What did you just say to me? No, I was okay with it. You were? Yeah, I was okay with it.

I knew we needed to do something and we made it happen. So what'd that look like? What was that, getting on a budget? Were you trimming back? Well, he sat down and he did, he's better with the the numbers and the the planning i'm the nerd okay okay um so he sat down and and he said okay i think this is what we need to do this is how we need to do it and we just started uh i started clipping coupons

i started which i'm not a big shopper like i've never been one to go out and spend a lot of money on clothes, things like that. So that wasn't an issue. But I did start thrifting and yard selling a little bit more than I used to. Okay. So I love to do that and DIY and some stuff. So that worked out. Very good. That's very good.

How's it feel now that you're free? Amazing. How long have y'all been married? 15 years. We'll be 16 in January. Have you ever been debt free while you're married? Amazing. How long have y'all been married? 15 years. We'll be 16 in January. Have you ever been debt-free while you're married? No.

No. Way to go. I wrote a check on my 49th birthday, which was two weeks ago. I wrote that check on my 49th birthday, and we're debt-free. Wow. That's great.

I wanted to do it by the time I was 50. Yeah, you did. And we did it at 49. Yeah. You did. Excellent. Excellent. Man, way to go, you guys. And we did it at 49. Yeah. You did. Excellent. Excellent. Man, way to go, you guys.

Thank you. All right. When somebody says, how did you do that, what do you tell them the key was? We had the plan and stuck to it. We downloaded the EveryDollar app. We stuck to our budget. We listened to the shows and stuff, and you would give us some hints on what to do with the budget and moving some things around.

And we spent a little more this month on this we pulled it from somewhere else um but just sticking to that budget and sticking with it and believing in yourself yeah and leaving what you can do and and and with me i'm always the when i get mad i get determined and like i said yeah i wasn't mad at dave for calling me an idiot but I was mad at Mick for beating him. And then I got mad at the debt, and that's what happened. We just got mad. We stuck to it and said, this is it. I'm ready to kick it. I'm done.

And that kind of determination just really helped us. And we had to really, really, you know, you have to work together. You start to get frustrated, like, you know, I really want to do this or I want to do that. Well, we can't. We can't go on that vacation. And it's like, okay, you know what? We want to do this or I want to do that. Well, we can't. We can't go on that vacation. And it's like, okay, you know what? We can't. We just can't do it right now.

On her 47th birthday. Tell what your mother-in-law. On my 47th, I love to, everything's a dollar when I go yard sale. Oh, it was just a dollar. It was just a dollar. I got this for a dollar. So nothing's in the budget. I can't do this.

Can't do that. So my mother-in-law gave me a birthday card and it had 47 one dollar bills in it and she said this is in the budget 47 one time you get 47 things she said spend it at a you know thrift store yard sale or whatever so i thought that was pretty cute that's very well done i like that very that means she was cheering you on oh yeah her family yeah my mom his parents yeah they're great that's very good yeah very cool all right i've been doing debt-free screams for almost 30 years here on the air you're the first trampas oh good that i've had i'm a first so that

means uh your mom and dad must have been like fans of the virginia that's where that's an old tv show you gotta be old to know what that is yeah i was a month early and they didn't have a name picked out yet and when mom went to have me dad was still waiting in the waiting room and watching a tv show and the virginian came on there it is and that was his favorite character so when the nurse came out they said we need a name he said name him travis we'll change it later it was a great character that's a great character and never changed it no no that's good i like that that. That's fun. Congratulations, you two. Thank you. Hey, we've got a copy

of the Baby Steps Millionaires book for you. That's the next step in your process. The Total Money Makeover book, you can use it or give it away. And the Financial Peace University membership, same thing, use it or give it away. That's the live and give box. You either live it or you give it

or some of each. We'd love to have you do all that. Thank you guys for coming. Hey, you're heroes. Thank you so much. I'm proud of you.. Hey, you're heroes. Thank you so much. I'm proud of you. I'm proud of you. You're amazing.

Very, very cool. That's a tough thing y'all did. It's really hard, and it's really worth it. I'm proud of you. Trampas and Jail, Knoxville, Tennessee. $126,000 paid off in 22 months, making $110,000 to $210,000. Count it down. Let's hear a debt-free scream.

Three, two, one. We're debt-free! Yeah! Woo-hoo-hoo-hoo! All right! Yeah! That's how you do it. Absolutely amazing.

You never know how those rants are going to be taken. Look. He was yelling at me. He was calling me names. That's the way I felt back in the day. Did you really? A little bit. A little bit.

You called me dumb. Did I? Through the magic of the radio waves. Through the millions of people that were listening, you were the one I selected. Yes. Yes. Okay. You know, Dave, you have that power.

Your voice follows people around. It haunts you. It haunts you. It haunts you. Yes. Well, it's also why I have such a fan club on Twitter. That's right. Yeah, I can breed trolls like nobody can breed a troll. I'm just telling you.

That's your spiritual gift. It is. But the people that know us know that the only reason we would do something like that is because we love you. We're there to help you. And if you think otherwise, you just misunderstood the whole idea. This is The Ramsey Show. Jade Walsh, all Ramsey personality personality is my co-host open phones at 888-825-5225 christy is in phoenix hi christy how are you good how are you better than i deserve what's up

well my husband and i own a franchise. It's a restaurant. Don't really want to say the name, but we have a business on a pretty hefty business loan. Which we owe 230 on the business. And we have about that exactly 230 equity in our home. Would you sell your home to pay off the business loan because the interest rate just keeps going up and up and up and our payments are now we've owned this restaurant for three and a half years and we started paying 2,500 a month and now we are at 4,500 a month because of the interest rate would you sell your house to pay off your business loan

are you making money yes we're making money, but... How much? What's your taxable income in 2023 going to be? Like take-homes? No, taxable income. What are you going to pay taxes on? What's your tax return going to tell me you made? The real profit of the real profit.

Maybe like $700,000? Why don't you just pay it off? return you're going to tell me you made? The real profit of the real profit? Maybe like $700,000. Why don't you just pay it off? You're going to pay taxes on $700,000 profit? Maybe not. That may be no profit. That might be gross revenue. That might be gross revenue. Yeah, it might be. You're right.

What do you take home do you know that out of the business pay ourselves a salary from the business yes what is that and that's about um 45 000 each and then he retired from the army so he has each sorry um no together so you make a forty five thousand dollar salary okay at the end of the year was there six hundred thousand dollars laying around in an account no then you did not make a seven hundred thousand dollar profit okay then no i'm really profit is what you what the business not profit gross revenue is the total money coming in then minus expenses equals profit does that make sense yeah okay and i hope to god you made more than forty five thousand dollars on seven hundred thousand dollars worth of income do you guys have money laying around in any

savings for the business we do retainers so so right now to get us through our winter, we live where it's kind of, it's hard to make it through the winter. So we have 50,000 to get us through the winter, this coming winter and 25,000 we just put away for savings. And then we have another, that's in a savings account. And then we have another 25,000 in cash. Okay. So it's a little hard for me to tell you what to do because I can't figure out whether you're making any money or not. You've been doing this three years, and it sounds like you've gathered up about it. My husband was here, and then he had to go to the dentist.

Yeah. That's okay. He knows all that. He does all the numbers and stuff. So here's the, let me kind of give you the concept, and then you and your husband can talk through it. The concept is I would sell my home only if i can't figure out a way to clear this debt in about three years which means you would need to make more than more than you know you after you pay your bills and eat

you'd need to make an extra 75 to,000 a year to throw at this loan. Okay. And I don't know if this restaurant is producing that or not. It doesn't sound like it is. So it does sound like you have made a mistake and you've overpaid for this franchise and this mess you've gotten yourself into, and it probably cost you your home. You're probably going to have to sell your home or you're going to end up bankrupt. Is the business the only money coming in, or do guys have other side jobs he has he had military retirement okay he has a military retirement yeah is that it yes okay yeah yeah you guys need to figure out

but it sounds like you guys are making maybe a hundred thousand dollars a year off of this total including the money you're setting back and the money you're taking home and all that um and that that means you're probably going to have this debt around for four or five six years if you keep your house so the fact that you overpaid for this restaurant you got excited and the fact that you went into debt to buy the restaurant uh which you should not have done by the way um then then i would not have done this deal, but you're there now. Those things are forcing you to sell your house. So it's as if at the beginning of this whole project, you said, I want to own this restaurant more than I want to own my house.

You didn't mean to say that, but that what it comes it's what it's going to come down to and so i unless you guys can figure out that you can pull a hundred thousand seventy five to a hundred thousand out of the business and throw it at the debt and still pay your bills at home and eat for the next two to three years if you can do that for three years you're out of debt okay and but i don't think this thing's generating that now maybe it will start but the fact that you have down winters in the restaurant business is weird yeah i felt the same things yeah i had i had more questions but you know i think 45 to earn 45 000 a year off the business just doesn't feel worth it. They're making more than that, but not much.

All right. Open phones at 888-825-5225. You jump in. We'll talk about your life and your money. Will is with us. Will is in Atlanta, Georgia. Hi, Will. Welcome to the Ramsey Show.

Hey, Dave. Thanks for having me. Sure. How can we help? I have $30,000 in gold and silver. I'm sorry. at hey babe thanks for having me sure how can we help um i have thirty thousand dollars in gold and silver i'm sorry and i have 20 and i have 25 000 in debt and i was wondering if i should pay that off yes thanks for calling because i get married yeah yes i get married in nine days and my pastor and i we went through marriage counseling and he recommended me to talk to you okay and i just wanted to see yeah let's reverse it okay

let's say you were debt free and you were getting married in nine days would you go borrow thirty thousand dollars to buy gold and silver nine days before you get married? No. No. You would not. So we're going to reverse engineer, and it'll give you the instant answer that Jade gave you. Sell the gold and silver now, today, and be debt-free before your honeymoon.

It'll change the way you walk. It'll change the way you talk. The rich rules over the poor, and the borrower is slave to the lender. That's what your pastor was talking about. And when you are no longer a slave, you can devote yourself to your new bride and to your bright and shiny future. And it's not bright and shiny because it's gold or silver. It's bright and shiny because you're smart enough to never do this crap again. Yeah. The next time you start investing in baby step four, make sure you're going into mutual funds and not gold, not silver, not single stocks. Well, we're going to give you Financial Peace University, which is our nine-week class on how to handle money as our wedding gift.

You and your wife go through that after you get home from the honeymoon. Okay. Some people are so nerdy they do that on their honeymoon that's just weird stuff yeah don't do that i don't want to go i don't i'm on the videos i don't want to go on the honeymoon with you okay so wait till you get home but we're going to give it to you for free and get you signed up and uh get you going on that so open phones at 888-825-5225 those of you that want to know a little bit more about money we're doing a free live stream of our first two hours of the smart conference in chicago saturday

morning we would love to have you do that with us jade will be speaking and george camel will be speaking in the first two hours and we're live streaming those two talks completely free. Just go to ramseysolutions.com slash live, and we'll get you signed up for that and get you going. You do not want to miss that. Dr. John Deloney's book, Building a Non-Anxious Life, is rapidly building its sales to be a number one bestseller. It comes out October the 3rd, just a couple of weeks from now. And if you want all the pre-sale goodies that we give you, $20 for the book, $75 worth of goodies. If you pre-buy it, you can get all of that now at ramseysolutions.com. Lots of things happening

right now around here. A lot of things happening. You can come to the Smart Conference if you're in the Chicago area. We'll be there Friday, heading up there in the morning, and we'll be there Friday evening and Saturday all day. And we'd love to have you. There's a few tickets left. You can still get in, ramsaysolutions.com slash events. In other words, a lot of the stuff you want to do, you'll find over at ramsaysolutions.com.

We appreciate you guys hanging out with us. This is The Ramsey Show. Hey, what's up, guys? It's Jade. If you love the show and want a deeper dive on your money journey, we have a weekly newsletter that gives you trending and helpful articles and tips on following the Ramsey way. Just go to ramseysolutions.com today to sign up for our newsletter. Again, that's ramseysolutions.com to sign up for our weekly newsletter.