The Ramsey Show - App - How Do We Get on the Same Page Financially? (Hour 3)

Episode Date: March 21, 2024

🎵 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 amazing relationships. I am Rachel Cruz hosting this hour with bestselling author and my good friend, jade warshaw and we are here to answer your questions so give us a call at 888-825-5225 and we're here to talk about your life your money your relationships your career anything and everything speaking about money yes we're doing here at ramsey solutions we're doing a money documentary coming up and we're working on, it's like a new show that we're doing and we need you guys to be a part of it. And I'm not giving any like spoiler alerts, but I'm going to be part of it. It might have to do with somebody coming

into your home and helping you with your budget and your life and getting your money together. It's just a little something going on is all I'm saying. Now, here's the criteria. If you are interested in this, you've got to be somebody who's in debt, right? You've got to be in debt. Maybe you and your spouse are not on the same page with money and you need help with that. Perhaps you're having a hard time making ends meet and you're living paycheck to paycheck and your income is a problem. Or maybe you've said to yourself, man, I make too much money to feel this broke. If you're in that camp, we want to walk with you for 90 days and help you turn things around. This is a very immersive documentary style show, I guess is

the best way to say it. So if you're interested, we'll put a link to a form in the show notes. So you can check out the show notes if you're on the podcast and you can fill out the form and we may or may not get back to you i'm just saying this is a casting call all right so put your best foot forward don't say anything or do anything weird but definitely be honest and we'll be able to tell anyway if you're weird so anyway put it out there we want to do this this is going to be so so fun and hopefully we'll help a lot but jade's pretty good at budgeting we'll just say that much i might help you budget a little we'll say that much oh so great and where did they go again jade they need to go to the show notes right james that's the best place to look at it yeah we'll have the link

in the show notes on youtube and podcast perfect so make sure to check that out, you guys. All right, to kick us off this hour, we have Leah in Dallas, Texas. Hey, Leah, welcome to the show. Hi, thank you for having me. Absolutely. How can we help? So a few questions that I wanted to bring up, but the main one is how to get my husband to be okay and supportive of me leading our debt payoff journey and the budget and just managing the finances. He views it as because he's the man of the house that it should be his job. And I am okay with that, but he does not budget. He does not track anything. He doesn't, you know, if we say how much did we spend on X last month, he has no idea. So you're just a little better with money. Like you're more nerdy. Yes. I do the budget and I track and I know how much for everything. And he just doesn't do that. So he's viewing it more as a gender role rather than a like skills role, like skill set.

Right. Individual skills. Yes. And that's a that's not a great way of looking at it. So I hope he watches this call because we'll just get right. I mean, so blunt to it because truly, because it's not him. And I think that viewpoint is, you know, they hold this esteem of I should be the one leading all of X, Y, and Z, probably from a, you know,

spiritual conviction part of your life is where that comes from. Listen, a good leader knows how to delegate. That's all I'm saying. Yes. And to understand

that you guys are a team, Leah. You are a team. You both have equal say in this. You both have the ability to look at money and you both have ability to say, hey, here's where we think our money should go. Naturally, one of you is going to be better at that than the other. It's just like when you're planning a trip. One of you naturally is going to be more detailed and plan a trip. Let that person who enjoys it and likes it, let them do it. Let them thrive in that. And that's what this money is. It's not cutting him out. And it's not an insult. No, it's not cutting him out either.

It's saying, hey, we're both coming to the table, but let me take the initiative because I love doing this. I'm good at this. And let me do this. Let me work in my strength here. And again, I think out of the name sometimes, Jade, and Leah and leah you're right here we're talking with us yeah out of a um you know a spiritual conviction if you will you know they i think i think we get that tangled up with oh my gosh we have to live this life together the man is the head and i've got to lead out on the finances and i've got to take and he sucks at it yeah and he doesn't want to do it and that's okay do you know what i mean And that's okay. Do you know what I mean? And that's okay. So like call a spade a spade. And again, it's not one is better than the other.

It's just more equal that you guys are working as a team together in this. So I can't, you know, I appreciate his heart in it. But I just think when you go about it that way, it can get dysfunctional really quick. And you don't make progress because the person that's good at it isn't the one that's that's saying hey let me like take the first couple of steps and then we're going to do this together it's almost like when it's almost like when you let like the legalism of something yes keep you from enjoying the fruit of what you're actually there for amen do you know what i mean yes and in this case it's like you both have clearly agreed that you care about getting your finances in order and you both have right there both of you have said this is something we probably need to do but he's getting so caught up in like like i said that legalism of it initiates it or something and

it's it's both of you guys it's both of you talking uh you guys responding and me talking about it right now um and it kind of made me realize that i think part of where his issue comes from is that i am trying to do it y'all's way like so you're on two different pages he he's we're on like half of the same page so he semi agrees but where we're different is he wants to keep, we have a pretty significant amount saved a little over 10,000 and he doesn't want to touch that even though we have an overwhelming amount of debt. And I don't like that. And then he also doesn't want to close one of the largest credit cards we have because he wants it there as a cushion,

like a just in case if something happens. So I feel like a lot of what he's wanting is very fear-based. Yeah. So how much debt do you guys have, Leah? I'm not counting the house, $104,000. $104,000. What's it in? What kind of debt is it? Credit cards, my student student loans and one car

okay uh let me ask you this would you say if he were on the call with us if we asked him are you happy with where you are financially what would he say yes absolutely not okay okay so here's the deal leah here's what has to happen and something that he again um i hope you're listening husband of leah because i'm sure you're right but what what people have to understand is if you're not happy with where you are financially that means you have to do something different if you keep doing what you've been doing you're going to keep getting what you've been getting which is the definition of insanity and so change is hard it's scary it's uncomfortable but in order to get a different result, you have to do something different. And this plan that we walk out with the baby steps is there for a reason.

It's not like it just was poof, we just made it up. It's three decades of people doing this. Jade and I both in our personal lives have walked this out. I mean, millions of people have done this. And if you walk the baby steps and you do exactly in order what it is, you're going to feel so different when it comes to your money. So hold on the line, Leah, because Austin's going to pick up. And I want to give you guys Financial Peace University, which is our nine-week course

and every dollar premium. So you guys can start budgeting together, both of you, and start this. Because again, it's the idea of getting on the same page with your values and the principles that's important. Hey, you guys, health insurance costs are only moving one way and that way isn't down. And if higher costs aren't enough, the wait times to see your doctor are longer and it's harder than ever to get anything approved through the bureaucracy. So if you feel like the system is working against you, try a biblically-based alternative to health insurance, Christian Healthcare Ministries. CHM is a health cost-sharing ministry that's helped hundreds of

thousands of families like yours take care of over $11 billion in medical bills since 1981. And CHM has also helped them stay true to their values and avoid miles of red tape. And CHM support goes far beyond meeting financial needs. They'll also help meet spiritual needs. Members become part of a family who will pray with them and for them when they experience a medical event. So listen, y'all, there's no better way to take care of health care costs. CHM programs start as low as $98 a month. So learn more today and join at chministries.org slash budget. That's chministries.org slash budget. Welcome back to The Ramsey Show. I'm Rachel Cruz, chatting here with Jade Warshaw for the hour, answering your questions at 888-825-5225.

And one of the best ways, if you have enjoyed the show, via the radio, podcast, YouTube, please tell your friends and family we just met uh a fun uh mother son at the break yes and he's 23 introduced his mom uh to the show via youtube and she just binged everything she said watched all the videos and paid off everything mortgage and all and i'm like see so all of you watching on YouTube, if your parents are out there, just send them some clips. You know, if you have friends, parents, send your kids some clips, you know, neighbors, friends, family, spread the word because our hope and our prayer for doing what we do is for you to take control of your money, create a life that you love,

not let this be a stress point in your life. And we really do believe over three decades of doing this plan and the baby steps that we know the answer. We really do. And it sounds prideful, but we really believe that this plan, it helps you guys. So we want everyone to experience that freedom and that peace when it comes to their money. And the way to do that is to, again, enjoy the show. Let this be part of your daily rhythm. Share it. Leave a review if you'll do that as well. Subscribe to the podcast. Subscribe to the YouTube channel. It helps us out a lot. And again, it helps spread the word because we want people in control of their money. So true. And Rachel, you said, I'm going rogue for a minute.

You said something and it's true. This has been a proven plan for 30 years. People have been taking this plan using it and changing their life and you know we get call after call every show and you know the last call that we got it was they had ten thousand dollars they weren't sure if they wanted to put that towards debt or people want to keep around credit cards and I can say like as a person I mean like you said all the personalities have walked through this plan and I think that there's always a piece of it that when you first start out mentally, you wrestle with, right? Like there's whether it's the cut up the credit cards thing or the buy a car in cash thing

or the zero credit score thing or the take your savings to pay off the debt thing. Like everybody's going to come up against that wall that feels counterintuitive or feels very uncomfortable, very uncomfortable. And the truth is when you face something that's unknown you can feel a little bit of fear or like you know i'm not sure if i want to take that next step but the thing that and this is a thing that i embrace and hopefully it helps somebody listening i never before i found ramsey I never helped anybody get out of debt or have a million dollar net worth or save up three to six. I never was able to do that for myself, let alone anyone else,

which means I did not have a plan that worked. Yep. And some of you need to stop a moment and go, does my plan work? Is what I'm doing working? And the truth is, if it were, you wouldn't be calling us or you probably wouldn't be, you know, listening to the show for the very first time. So there is a little bit of pride that has to come down and go, listen, my way of doing things is not working. This show has been here for 30 years and this method has been here for probably even longer. And it's helped people and it's helping people and it actually works. And sometimes you just have to accept that and go, okay. And I love that. Like you said, Rachel, the young lady and young gentleman in our audience, she looked at this and goes, oh, this works. I'll do that. And it's honestly,

it's just as simple as that. And I promise as you keep walking through that plan, you'll start to see, oh, it really does work. And this really you know that's right that's my little two cents for you guys today no i love it i love it and change is hard it's uncomfortable but it's the way and it's just common sense you guys it's got we say gods and grandmas ways of handling money so it's not the new exciting trend that you're gonna see on tiktok and like all of this oh well you just do this backdoor thing here. It's pretty much common sense, but it works every time. It does. With every debt level, every income level, regardless of where you are, it works. Yeah. All right. Up next,

we have Carla in Los Angeles. Hey, Carla, welcome to the show. Hi, Rachel. Hi, Jade. Thanks for taking the call. I so happy to be here um how are you guys doing yes we're doing great glad you called in how can we help um yeah so i similar to what you were just talking about um i have a bunch of student loans that are coming up they were unfrozen after that long student loan freezing during covid um and I have a pretty high payment coming up. And I've been listening to you guys. I'm a relatively new listener, but I'm fully bought into taking the baby steps and tackling one goal at a time.

And I'm just thinking through, I have a plan for this year to get really tight on my budgeting and to cut down the debt as much as possible. And I think I can, I have $89,000 in student loan debt from undergrad and grad school. So I have a plan to tackle it with budgeting, but I also during COVID invested in a lot of stocks, singular stocks, even a little bit of crypto and then some other Vanguard And it's about $38,000

worth of stocks. And I'm just not sure if I should liquidate them. I'm not, some of them are a little bit undervalued for what I bought them. So I just am a little bit uncertain about taking a loss if I was to liquidate them and put them towards the student loan debt. But I feel like I know it's the right thing to do, but kind of just wanted to hear your thoughts. Well, you tell us what you think the right thing to do would be and we'll validate it or not. Okay. I do think the right thing to do would be to liquidate it,

even if it is taking a lot, just because I do believe in the mindset of focusing on the debt first and then full force investing later. Yeah, I agree with that because I don't think that these stocks were ever intended to be that long-term investment that's going to get you through retirement and set you free because they're just not, you know, single stock investments would not be, it's just so high risk and it's so up and down. So for me, because it wasn't the time or the right place for me to invest the money, I would liquidate it for that reason and use it for much greater purpose to pay off this debt. So I think you're right on. Yeah. How much do you make a year, Carla?

Take home pay after taxes and 401k contributions is around 80K. Okay. That's great. Yeah. And I just see this as a, just like a jumpstart to paying off this 89,000. I'm like, man, if you could get it, you'll get it down. You'll pay taxes and stuff on some of the things, but you know, anywhere from, you'll have 50, 52 or so left in student loans. And that just feels like, oh my gosh, a totally different mountain to

climb versus almost 90. You know what I mean? Like there's a, there's something about that. Now it's less than your yearly income instead of more than your yearly income. That's right. Yes. Yeah. So how old are you? 28. 28. Okay. You're really smart, Carla. There's not, I mean, just the fact that you even were thinking about all of this during COVID and you're at least being proactive, doing something with your money. And I think that that is going to serve you really well later on. So let me just say this, too, on the investing side, you have plenty of time.

Yes, ma'am. You have plenty of time. And I would want you to run some calculations yourself because you're a numbers person. And I want you to see it for yourself. If you go to RamseySolutions.com, pull up our investment calculator and just plug in some numbers and just say, okay, what if I did this? What if I liquidated everything, put it to the debt?

What if I got an extra job, a side hustle, and I really worked hard to get this paid off in two years, and you really started investing 15% of your income, let's say at age 29 or 30, then run those numbers from 30 years old to 55 years old, investing 15% of your income, let's say at age 29 or 30, then run those numbers from 30 years old to 55 years old, investing 15% of your income into retirement, knowing that your income is going to increase over time as well. And just look at it yourself and just say, OK, I'm going to be OK. And so I think we hold on to this level of security, especially when it comes to saving or investing.

And the truth is, there's a lot of risk with this payment of your student loans going out every month, right? And having this payment that if something happens to your job, you still owe someone something. So that debt freedom is huge. It really is with the peace of mind. So I would get there as fast as possible. Okay. Yeah. Thank you. I think it's just shifting the mindset from trying to do so many things at once to just one thing at a time. I also was trying to send for a home and I'm just, I'm having to like refocus my mindset really, but I do believe in it. Yes, absolutely. Well, I'm so glad you called Carla because I think that's also normal, right? I mean, what you're, what you're thinking through and processing. I mean, the truth is, you know, she's making $80,000 once she gets this debt

paid off. If she invests that money from age 28 to 68, that's 30 years average rate of return. I mean, she's going to have $2.2 million just investing 15%. And that's assuming everything stays the same. Everything stays the same, which of course is not because she's a genius and she's going to go on and do make a lot more. So, I mean, there you have it. That's awesome. Well, thanks, Carla, for the call. This is The Ramsey Show. So we have different events here at Ramsey Solutions that we put on throughout the year

that we want you all to come hang out with us here at our Ramsey Solutions headquarters. You know, stay for some teaching. And we always want to create a great experience for you. So we're so excited because we have a weekend of that coming up. The Total Money Makeover weekend. And it's going to be here in Nashville at the Ramsey Solutions headquarters. And it's a brand new event, May 10th and 11th. So in one weekend, you're going

to get a complete crash course on everything when it comes to your money. We're going to be doing brand new talks. All the Ramsey personalities are going to be there. Dave Ramsey, George Camel, Jade Warshaw, me, Ken Coleman, Dr. John Zaloni. And we're all going to be talking about this subject because we find that when you are in person with people, there's a level of connection there. There's a level of energy. And when you're with like-minded people, something just changes differently than just watching us via a screen or just listening to us in a podcast. So we really encourage you to come out. We're really excited about this. It's going to be a full weekend. So we're actually going to do a live taping of Smart Money Happy

Hour. Me and George Camel, one of our favorite podcasts. We're going to be doing that on Friday night and then all day Saturday. We're going to be hanging out with you guys. We're doing Q&A throughout the day. Again, different talks from all the Ramsey personalities. So get your tickets because our Platinum Plus tickets, they're already sold out, but you can still get Platinum or VIP. And you have to get them now because, again, they're selling pretty quickly. So go to RamseySolutions.com slash events and check out our Total Money Makeover weekend. We are so excited. It's coming in May.

Come hang out with us. All right. We're going to the phones and we have Hayden in Phoenix. Hey, Hayden. Welcome to the show. Hi. Thanks. So I have a house question.

A little bit of background. Me and my husband, we're 29 and 30 years old. We have a five-month old son. We're currently completely debt-free, no student loans, no credit cards, no car payments, no nothing. And we have about $130,000 in cash. Great for you guys. Congratulations. Yeah, so we are in Phoenix. My husband's job has been really good, and that's keeping us here. Long term, we do want to move closer to family, which is up north in Idaho or Utah. But we anticipate being here for at least five years. We're actually currently under contract

for a house supposed to close tomorrow. However, we got a late disclosure with the condition of the house and we're kind of questioning whether or not we should move forward and close or back out and other places what's the late disclosure yeah so the house is old it's built in 1959 so we're aware of electrical issues indoor plumbing issues roof issues wonder what issues like it's basically a full gut job okay okay um but do you have the money for the full gun job um so we have that 130 we're planning to put about 50 down and then have about 50 um four different projects and kind of cash flowing a lot of it because um from what we were told a lot of it is livable um and we could just kind of get to the projects as we needed to. However, the late disclosure is with the condition of septic. So it's not on city sewer.

It's on a septic. And it's basically like a homemade septic system. That just is not the least homemade thing I think I would have. Listen, there's many things that can be homemade. Oh, no, Hayden. Septic system should not be one of them. There's a lot of things I want to say right now. Okay.

Yeah. That stinks. Okay. And Hayden, this house, sorry, is close to where you guys want to move with family? No. So it's actually a little bit further away from our where our current life is um it's about 40 minutes away from my husband's job so it's definitely doable why do y'all want like in the most ideal situation why do you want to move there honestly just due to the price um okay you would love to be right can i tell you uh work yeah there is, and this may not be you, Hayden, so just correct me,

but there is a romanticized fixer-upper, and we get to go in and have the before and after pictures with the great music and put it on the Instagram reel, and that's what we see, and that's what we, oh, it just looks just so, kind of just like, oh, my gosh, it's just a great adventure. It's terrible, Hayden. And you're going to be living there with a baby. And it is not with a homemade septic system. It's a crappy situation.

I'm telling you, it is. And again, some people can do the renovation thing, but we talked to more people that took out HELox to do it they get halfway through it's too much work they have to hire contract i mean it just ends up being it ends up being another job i mean you end up literally having a part-time job and it's romanticized because of tv shows and instagram but it's a lot of work and 50,000 may not go far how many square feet is this home um so it's about 1700 square feet okay so it's a lot okay not not too bad i don't know hayden and what do you guys know about i mean with the septic tank thing do you guys know what your path forward would be like how do you get on the the yeah so that's we've reached out for additional quotes and they're they got a disclosure late, they're able to push closing late.

But me and my husband are both looking at each other like, ah, this seems kind of a straw. Are you able to get out of it without penalty because of that? We should be able to, yeah. I think the way the contract is written, that we should be able to back out without having to lose any earnest money or anything like that. Listen, for me, this is a brown flag, which is also a red flag. Like I'm going to make jokes all day about this. But for me, that's enough for me to back out. It sounds like a money pit too.

Yes. I don't literally want to have to deal with someone else's crap. There's enough things to deal with in the world. And so I think that, guys guys I can go all day on all day all day I won't I know and Hayden I know you guys are probably so itching to get into a house and the motivation you did it is because of the price yeah and I think it's going to end up costing you guys more in in finances and emotionally and exhausted and I mean it's just a lot. I mean, you're just, you're going right in to live in a fixer-upper.

And I just don't think it's... It's the baby too, with the baby. I just feel like that feels like a lot. And he's currently waking up from his nap right now. So I'm like, oh my gosh, I wouldn't have time like I think to do it.

So yeah, that's kind of where we're leaning, but it's just... Yeah, have some patience. Have some patience. We look at so many houses and we just want to get in. Yeah yeah, that's kind of where we're leaning, but it's just, yeah, have some patience, have some patience. And we just, yeah, but a home is one thing you don't want to go into going.

I don't know. Ooh, maybe, maybe not a home is one thing you want to go into being like, yes, this is it. Yes. This is the one we can afford it.

It's the right place. Like, and you want to feel that. And here's what I want for you guys to hate. And as I want you, I, I want you to have three homes on the table that are in your price point, that are in a situation that you're like, okay, this would be good for our family, this, this, or this. Which one do we want?

When you have choices and options, you make better decisions. When you get pigeonholed into like, this is the only thing, this is it. We looked at so many houses. This is the only one. You make really bad decisions. And that's with anything in life. So slow down. You guys have the time. Okay. And you're in a great position Hayden that's why I'm like I don't want y'all

to screw this up because you're in a great position you have no debt you have cash time is on your side you you are the one that's on like the right side of this right and so um take your time I would keep looking if it were me and again maybe and me maybe you're joanna and chip gains and this is like this is what you do and you'll love it and maybe it's fine it just sounds like a money pit to me and then there's things like a homemade septic that i'm like i don't know i just don't i just don't think it'll be worth it your hard-earned money i'm scared will not go as far as you think it will in a situation like this. And I would be patient and wait it out. I'm with you 100%.

Yeah. It is hard though, because when you do feel like, oh my gosh, we are in a financial position to do this. We want to, but then all these things keep coming up. Listen to those things. Listen to your gut. Listen to your gut. And it's, again again without other options on

the table where you can fully confidently say this is where we want to put our money and this is where we want to land and be here and i don't think that late disclosure was on accident i'm just saying that's a great point if they loved their septic system they would be that would be first thing you should see our amazing amazing skepticism that my husband built. Said no one ever. It's great. Said no one ever. That's so true.

There's a reason. Hayden, there was a reason for that. Oh, good luck, you guys. We're excited for you. This is The Ramsey Show. Our scripture of the day comes from John 14, 27. Peace I leave with you. My peace I give to you.

I do not give to you as the world gives. Do not let your hearts be troubled and do not be afraid. James Brown said, I'm trying to do one thing. Bring people joy, just like church does. People don't go to church to find trouble. They go there to lose it. Okay, James Brown. So good. Well, I'm Rachel Cruz, and this is Jade Warshaw, and we've been answering your questions. So let's go out to Los Angeles, and we're talking to Blair. Hey, Blair,

welcome to the show. Hey, y'all. I'm a big fan of both of you and excited to be chatting with you. Oh, I'm so glad. So glad you called in. How can we help? So I have a question about Baby Step 3B. I'm at a point in my financial journey that I think intellectually the next prudent step is to buy a house, or at least, you know, with my sights set on that.

But I'm pretty averse to risk and I'm scared to. So a little bit of background. I'm 36. I'm single. I don't have any kids and don't intend to. And I live in Los Angeles where homes are very expensive. I don't have any debt. My current net worth is around $350,000. I have about $150,000 in investments like 401ks and stuff. And then around $200,000 in a high-yield savings account, which I realize is too much to be holding onto in a high-yield savings account if I'm not planning to buy. But I'm just scared. I really like not having any debt and because I am single and homes are so expensive, I'm just scared to, um, you know, take on such a big, you know, like such a mortgage that I think would require you in LA.

Is it your job or you just love it there? You have family? It's my job. I'm a lawyer. My practice is here. My clients are here. Have you priced out things, Blair, like townhomes, condos even? Because when we say buying a home, it doesn't necessarily mean a single family. Single, standalone house. Yeah. I mean, have you looked at other options? Because you are single. Yeah. You know, you don't need a ton of room. So it's like, yeah. Have you looked at those? Have you priced out things like that?

Yeah, for sure. I don't think I'd be comfortable buying anything more than like a one bedroom. Okay. And what are they going for? Even that is going to cost probably like three quarters of a million. Yeah. In the area that I live in. Sure.

Like that seems about right. Yeah. And that's more of a mortgage that I want to take on with the current cash I have. And I guess, should I just keep saving and moving in that direction? I feel a little bit like I know 36 isn't that old, but it feels a little bit old in retirement age. Like I feel like I should be investing more. What do you earn every year? What's your income? My this year be about $320,000. Here's the thing.

Good for you, Blair. You're killing it. Even in Los Angeles, $320,000 is a good income. And you've got this money saved. And there is a part of this that is prudent because for most of us, when we look at our budget, when we look at what we're spending money on, housing is the biggest ticket item. And if you can find a way to stabilize that, because rent can always go up, it can always change. There's leases involved and you have to go here and there. But if you can stabilize that item by purchasing a home or purchasing, in your case, a condo, there's something that does actually provide peace within that, even though, like you said, it's a lot of money provide peace within that, even though it is, you know, like you said, it's a lot of money to spend. But on the end of it, you're also building equity. So, you know, my screen says, should I invest or should I, you know, buy a house?

Then I would say it's in many ways you're doing the same thing when you're buying the home. It is an investment. Yep. You know, so hopefully that gives you, I mean, does that help you in any way to kind of see that this is, this is you making an investment? Yes, you're spending money, but it's, it's invested money. It's not going down a black hole. And by doing that, you're stabilizing your lifestyle. Yeah, that, that makes sense. I think, I think I just needed to hear that it's okay. And listen, if you do it by the parameters that we talk about, you're right. There is a scary way to purchase a home

and there is a right way to purchase it to where it's a blessing. And if you follow our parameters, I'm telling you, it's gonna feel like a blessing. You're gonna be like, oh my gosh, this is great. No more than 25% of your take-home pay. That's what you're looking for with your HOA, taxes, insurance, everything all in, no more than 25%. And on a 15-year fixed rate, that's what you're looking for. And with your

income, you might have to save up a little bit more money to make this happen. I'm not sure you'll have to run those numbers, but that's what you're looking for. And if you can accomplish that, then that's chef's kiss. Yep, for sure. And you know, Blair, we always say facts are your friends. And sometimes these things can be so emotional. And sometimes the math is what helps us. The math can give us permission and the math can give us a big red light, right? And that goes on either side of the coin. Some people want to rush into something, but you're like, look at the math, it's not going to work well. But in your case, thankfully, you're kind of on the other end of it where I'm like, Blair, the math could work. You know what I mean? So actually run these numbers out and see them because the numbers, they don't have emotion.

So just look at them and say, okay, is it within these parameters? Because we're a pretty conservative bunch when it comes to owning a home. We want you to do it really, really well. And so again, it may take you, Blair, another year or two, but the more you're in that mindset and the more you're working towards some things, I do want you working towards home ownership. I do want that to be part of your overall financial picture. That may give you some peace too, right? You're not having to do this tomorrow. You may say, you know, it's March now. Maybe March of next year is my goal to really say, okay, I'm going to start looking and, you know,

or whatever it is, right? You can have a timeline. But I think those things will help you when you actually look at the numbers, give yourself that permission and give yourself a great timeline. Yeah, that makes a lot of sense. I appreciate it.

I think, yeah, it's helpful to hear too that this is a pretty conservative strategy and it's going to be OK. And it's OK for you to do both at the same time, by the way, if you wanted to stack up more to put towards this down payment and start your 15 percent investing. Totally. You can do both. Yeah, I am doing I'm investing 15 percent of my income. OK, great. So, yeah, you don't have to stop doing that in order to save up the down payment. You can, because I heard you say, you know, with your age or 36, like you don't want to, you know, get behind or anything like that. So you're doing very well. Okay, awesome. Thank y'all so much. I really appreciate it. Yep, absolutely. Blair, thanks for calling. We're excited for you. All right, let's go to Jennifer in Toronto. Hey, Jennifer,

welcome to the show. Hi there. Thanks for taking my call. Absolutely. How can we help? I'm calling about an insurance claim. I suffered some water damage in my home and I'm expecting an insurance claim of about $30,000. I'm on baby step two two and I had three possible ideas as to what to do with that insurance claim and hoped you could weigh in let me know what you think. Okay. So first one would be simply to repair the damaged areas of the home. Second one would be to accept a cash payout which would be 60 to 70 percent of the amount and put that towards my debt. And the third option would be to use the funds to put in a basement rental unit, because currently in our area, there is a shortage of rental units. And I know I could rent that out for about $1,800 a month.

I would not do C. How much debt do you have? $51,000. $51,000. It's a line of credit at 1.99% line of credit. And what repairs do you need to do to actually have a functioning house? You know what I mean? Like, I'm sure some of it was damaged. So what would you, if you priced it out?

Yeah, surprisingly, I've been lucky. It's really quite functional. I'll definitely need a new kitchen floor. Yeah, and the basement, it's not pretty, but I'll definitely need a new kitchen floor. Yeah. And the basement, it's not pretty, but it's still functional, warm and dry. So I would be okay to live with it for a few years if need be. But eventually you are going to have to deal with the damage though, right? Well, the kids are getting older and they're moving out. So potentially, no, I could leave it unfinished.

Okay. Yeah. As long as it's not doing more damage to the home, I would fix, you know, the flooring, fix what you need to fix. And I would throw the rest of the debt is what I would do. Here's the thing though. You're only getting 60 to 70% of the $30,000 claim if you do that, right? Correct. So does that, what's the numbers on that how much is that going to leave you to pay off i'm guess i'm trying to figure out if it's worth it if it's only going to leave you a few you know a couple of thousand for the debt i'm almost like use it yeah yeah yeah if the floors come back and they're 20 000 or something and they won't be that but like yeah yeah so run those numbers that's a good. Run those numbers out a little bit further. All right.

Thanks, Jennifer, for the call. Thank you, America, for listening. Jade Warshaw, always a pleasure. Thanks to all the guys in the booth. And thank you, America. And remember to take control of your money and create a life you love.