The Ramsey Show - App - How Should I Be Investing Right Now? (Hour 3)

Episode Date: August 4, 2023

Jade Warshaw & George Kamel answer your questions and discuss:   EveryDollar, budget for the life you want today for free: Click Here "Should I buy a tiny house?" "How should I be investing right now?" from the blog: How to Start Investing in 2023: A Beginner’s Guide, "Is it ever okay to pause the baby steps?" "How do I become a millionaire?" from the blog: How to Become a Millionaire Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Enter The Ramsey Cash Giveaway for a chance to win $3,000! https://bit.ly/TRSCashGiveaway Want a plan for your money? Find out where to start: Click Here Listen to all The Ramsey Network podcasts: Click Here Interested in advertising on The Ramsey Show? Click Here Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

Девочка-пай Live from the headquarters of Ramsey Solutions and broadcasting from the Pods Moving and Storage Studio, it is The Ramsey Show, where America hangs out to have a conversation about your life, your money. This is where we build actual amazing relationships as well. I love it. I'm your host, Jade Warshaw, joined by George Camel, about to be...

A dad. Yes! Oh my gosh, Jade. Thanks for the reminder. I know, it's coming. Existential crisis. Yeah, this is baby month, so... This is baby month.

Pray for us. You're doing good. You're here. You're here. You're focused. Well, the dads are kind of like useless up until, you know, other than just supporting mom the whole time. And then baby's here and then I'm ready. That's right.

I'm ready to change some diapers. So get at him while you still can. The number is 888-825-5225. While I'm still sleeping somewhat well. Yes, tap into this delicate genius sitting right next to me. So delicate. Ever so delicate. Like I said, the number is 888-825-5225.

And we will get into it. We got Mark in Denver, Colorado. What's going on, Mark? Hi, good afternoon. Glad to speak with you. You too. What's going on? I'm actually not in Denver, Colorado.

I'm actually close to Gary, Indiana. I'm an over-the-road truck driver. Oh, cool. Can't pin Mark down. I got a question. What is your opinion or your thoughts on the current trend of the micro houses? I'm working the steps. I'm I'm in step two, paying off debt. Uh, I went through a divorce last year. I basically haven't had a place of my own now

in almost two years. Uh, when I am ready to buy a place, it's just going to be me by myself i'm single no kids no nothing well i'm wondering if these if a micro home depending on property it's on or whatnot do you think it's going to be an appreciating asset in the long run the other thing is when i'm thinking about buying a home is since i'm gone for four to six weeks at a time i really don't think a regular home would be good for me even a small one because i'm not going to be able to mow the grass i'm not going to be able to shovel the snow I really don't think a regular home would be good for me, even a small one, because I'm not going to be able to mow the grass. I'm not going to be able to shovel the snow. I'm not going to be able to take care of it. The only other option I thought that might be good for me would be buying a condo or a townhome. There you go. And that's kind of where I'm at.

I love how you're thinking about this. I love how you're trying to choose the right option for you and your life, your work. That makes sense. It seems like George might go a little further into the tiny house. I have a lot of thoughts. I'll tell you my initial thought is this is kind of this is relatively new in the culture, I would say. It's not something that's been around for decades and decades and decades and decades. And so I would prefer to invest in a market that's a little bit more, we know that it's a little bit more stable, a lot more stable, really. So yeah, you're probably not going to be the guy that's got this four bedroom house on bunches of acres of land. But I do think that there's a situation that is right for you, whether it's a condo,

a townhouse, where you are invested in something that we know is going to go up in value over time. And again, yes, when you have a home, it does serve that purpose of, hey, this is a place I go to lay my head. You have the lawn mowing in that side. But there's also this thing where it is a wealth building tool, and it's such a huge part of building your wealth over time and so and of course it's keeping your your your biggest monthly line item stable right we don't want you renting forever because rent just goes up and it's always fluctuating and changing so that's kind of the argument i have my concern about renting is i don't know if it would be worth it for me to rent a place for the time being because like i said we started the

divorce proceedings in march two years ago uh my wife had covid real bad she was in hospital i had a month off and then after that things just kind of fell apart um but so it's been since christmas two years ago before i've actually had my own place where have you been staying just currently i've been staying and using a friend's address in colorado okay uh typically when i go home you know like i said i usually work four to six weeks a month and a half at a time i'll go home for like a week i'll take a week off and i'll spend one or two nights uh with my brother and his family and the rest of the time i'll usually find an inexpensive hotel to spend three four or four or five nights and then i go back to work yeah so you're just yeah okay and i don't know if the rent renters market housing market in colorado is just unreal

right now yeah and i you know a studio small one-bedroom apartment is 1500 bucks a month yeah and when i go home i'm only, seven, eight hundred dollars every six weeks on a total. I think for you, it's like cost beneficial analysis. It doesn't fit me. But the other thing is, is, you know, working for a month, month and a half at a time in a semi truck. You're in your truck. I basically live in this thing. And a lot of truckers do. We basically live in our trucks. I mean, you've got the options you've got in front of you are you're in baby step two. So even if you wanted to buy a home right now, I would say let's get out of debt first. So that's that kind of shelves and tables that.

And if if you decide I'll be out of debt by February or March of next year. Excellent. That's great. And then you can kind of start saving up and see what happens next. But in the meantime, you know, what you're talking about, my husband and I used to work in entertainment for cruise lines and we would travel like 52 or like 35 weeks out of the year. So there was this thing of like, we're never home. And so we got the cheapest townhome that we could find, which happened to be one that his mom was renting out. And then we got roommates to cut that in half. it was like okay now this is more like it we're

paying like 600 bucks a month we're only there sometimes so i think you can get creative and find the right situation where it's like okay i'm not overpaying but i'm also not getting into something that's too expensive for my purposes yeah i don't think a tiny house micro house is the right move for a whole lot of reasons number Number one, you need the land that it sits on, which is expensive. You need all kinds of permits. You need to build the thing, and it's way more expensive than you think, and it depreciates in value because there's just not demand for it. Even if it's on a foundation, it still won't increase much in value

because there's just simply not much demand. So I don't want you sinking all this money into this thing, and then all of a sudden you're like, I don't even want to live here anyways. So for a lot of reasons, don't do it. I actually did a whole video on this exact topic on tiny homes on my YouTube channel called the only way to afford a home question mark, where I dive into this for about nine minutes in detail. So go watch that for my full answer. The solution I think for you is my friend in Chattanooga rents out a room in his house to a guy who does like, he's kind of travel nursing. So

he's there like one week out of the month and he rents to him cheaply in the other room. Yeah. And it's a great situation. So I would either find a situation like that or just keep doing the hotel thing. I mean, your life as a vagrant is just wild right now. So it doesn't make sense to plant roots until you have the money to where you can afford to take the hit of just paying that small mortgage payment every month on a condo just so you have somewhere to lay your head that you can call your own. Yeah. And again, that's kind of the thing that what I was thinking is I just going to have to bite the bullet and work through like a year from now to be able to finish paying off my debt, hopefully by the end of the year. And then one last thing, I should be all done by February, March.

And then, you know, I have no expenses. Yeah. Other than... That's a blessing. So let's build a small emergency fund. That's why I'm aggressively attacking my debt right now. That's right. And you're doing the right thing. You're aggressively attacking the debt.

Like you said, it's going to be gone by next year, March, April, you're going to build up that savings. And then you can start looking at building up savings for a condo. And again, it's not just to have a place to lay your head. It's because you're stabilizing that biggest line item on your budget, which is housing. And eventually you'll be able to use that to build some wealth. This is The Ramsey Show. This is The Ramsey Show. I'm Jade Warshaw. This is George Camel. Hey, if you're a new listener and you want to dive deeper into the Ramsey baby steps, what am I talking about? You hear us all the time. Callers call in and we're giving them advice based off of just a format, a set of principles, a plan that we have here. It's based on seven baby steps.

And that's what we're talking about. And if you're like, Jade, y'all are saying things, I don't know what it is. Head over to RamseySolutions.com and click on that get started button. There we'll help you figure out your best next step for your particular financial journey based on exactly where you're at today. And you'll get all that lingo explained. Hopefully you'll be inspired by it and you'll have to, you'll like start doing it. That's what we hope for you. But that's ramseysolutions.com and click the get started button. That's the thing, George, we talk about a lot of things that's, you know know we use terminology and some lingo that's like what are you saying gazelle intense what what is inside baseball yeah but once you hear like oh

that makes sense it's all common sense we don't try to use ten dollar words for fun we put the cookies not even on the bottom shelf on the floor I know that's right because money is already complicated and stressful yeah we don't need to be talking, you know, like I'm a guy with suits on with all my accounting jargon. Yeah. Back in the day, that was the thing that led me in is I was like, okay, this is for the commoner. Yeah. That's why Dave is so successful. He brought personal finance to the masses and went, you don't have to be a financial expert and have a degree. Yeah. I'm going to help you figure this out. I don't want anybody to make me feel silly about my questions. All right. So the Ramsey Show question of the day is brought to you by Neighborly, your hub for

home services. Neighborly is a place to find reliable help for your home from trusted, locally owned businesses like Mr. Appliance, Mr. Handyman, and Precision Garage Door Service. I need that. Visit Neighborly.com today to find home experts available to serve you. Today's question comes from Holly in Utah. She says, I'm 23 and I'm a recent college grad. I'm currently working making $50,000 a year and I graduated without debt and currently have $20,000 in savings. My monthly rent is $700 a month and my car is paid for. My question is,

how should I be investing my money at this stage of my life way to go holly i'm impressed excellent i was waiting for there to be like a giant conundrum here i know waiting this is a great problem to have but she's got no debt she's got the emergency fund making 50k at 23 we are ready to invest that's for sure so how does she do that well the simplest way here's the my five word investing strategy is you just go, okay, if I can remember this, I got it. Match beats Roth beats traditional. And so you just use that filter to go, okay, do I have a retirement plan through my employer? That's a great place to go. Generally, a lot of employers have a match. That's great. So it might be, hey, we have a 3% match, which means if you put in 3%, they're going to put in 3%. That is a 100% return on

your investment. So we take that first. Then beyond the match, we're going to look at all of our Roth options. So generally, a lot of people may have a Roth 401k. That's a great place. You can just fill out the whole 15% there. That's great. And that's baby step four, which is where Holly's at. Invest 15% of your income into retirement. Now, a lot of people say, I don't have a Roth 401k. Well, you probably have access to a Roth IRA, which is outside of an employer. A lot of people get those confused. The 401k, IRA, what's the difference? Just remember, 401k is for your employer. IRA is outside of your employer. That's very good. And so that's a great place to go next. I love that. Once you've maxed out your Roth IRA, you've exhausted all the Roth options, you can go back to that tax deferred

plan, which means Roth is after-tax money that grows tax-free. The tax deferred plan is, hey, I'm not paying taxes on it now, but I will when I withdraw in retirement. Yeah. So you can circle back to your traditional 401k. Now, it's good to note that these accounts are just shells. Yes. Your 401k, you got to actually buy something inside of that in order to be investing. So we recommend growth stock mutual funds, spreading that across four different types to keep them balanced. And I've got a whole video walking people through this on my YouTube channel called

Investing for Beginners that we uploaded about a month ago, where I walk through this because it can get complicated. It's like, how do I choose the mutual funds and what are the four types and what's all this stuff about diversification and compound growth? It can feel overwhelming. Absolutely. That's one of the reasons we suggest working with a smart investor pro or somebody who can walk alongside you and help you make these choices. Just educate you. They're not doing it for you. They're just showing you the path and you go, okay, I know what I want to do. Yes. And never, ever invest in something that you don't understand. If you're like, I don't get it. That's okay. Just wait until you do get it. Keep educating yourself. Keep talking with your smart investor pro and don't be afraid to ask questions. Look,

if somebody makes you feel stupid for the questions you're asking, it's time to move on and find somebody who will have the heart of a teacher and teach you. Hey, let's continue this conversation just a little bit further. So, because there's a lot of things that I thought about when you read that question of the day. Next question I thought is, a lot of people go, okay, I can't invest in a Roth IRA. I make too much money. Oh, that's a great problem to have, first of all. So the Roth IRA does have income limits. There is a great little backdoor option called the backdoor Roth IRA,

where you essentially fund a traditional IRA with after-tax dollars, and then you convert it. Yep, and it's very fast. It's not something that takes forever to do, and it's totally legal. It is not, yeah. It's not this that's like a, takes forever to do. And it's totally legal. It is not. Yeah. It's not this like, well, we found a loophole in the matrix. No, this is- Totally legal. It's the law. It just sounds sneaky. When they say backdoor, it makes it kind of sound like, well, wait a minute. And then George, let's continue it a

step further because I just, this is one of those topics. It gets juicy now. Yeah. Let's teach a little bit. So then you've got that. Let's say that you're just killing it. Like you- You're maxing out a Roth 401k. You're maxing out an IRA. Yes. Where do we go next, George? What's next? I think the HSA is one of the greatest life hack investing tools.

So that's a health savings account. You're going, wait, what? A health savings account to invest? Yes. You can invest with a health savings account once you meet a certain threshold. That's right. Some of these accounts. So ours here at Ramsey, after a thousand bucks, I can begin investing any extra money into the stock market through mutual funds.

Through your HSA. And you're thinking, but that's not for retirement. It's for healthcare expenses. Tell them. Well, once you turn 65, you can withdraw that money for things that are not qualified medical expenses. And it becomes like a traditional 401k at that point. That's right. So you will have to pay taxes on that money versus using it for qualified medical expenses. You don't have to pay taxes. So there's still a benefit to use it for that stuff. And at 65, my joints are going to be aching. I'm going to be dipping into that HSA. I know. I know that's right. Dave Ramsey has an HSA and he doesn't actually use the HSA. He uses

it to invest and he just cash flows out of his checking account for any kind of medical expenses. So that's kind of a life hack. I love that hack. The way I do it is I keep the deductible liquid and then you can keep investing from there on. So in case, I don't know, if you're a person who you know you're going to hit your deductible, it's in there. That's kind of a good way to think of it too. Now, George, let's call out the fact that in order to have an HSA, you have to have a high deductible health care plan that's right hdhp there you go and everybody may not have that so george you know where i'm going next what if i can't get an hsa george this is exciting where do i go next so if you have exhausted all tax advantage retirement

options you can always just open a taxable brokerage account. What does that mean? That just means this is not for retirement. This is just for general investing while I'm in my working life. And that money you use after tax dollars, you invest it, you'll have to pay taxes on that capital gains. And there's different structures for that, depending on how long you left the investment and all of that stuff in your income. But long-term capital gains is your best bet. So if you just leave the money in there, invest it for a year, you'll have probably most people,

15% is what you'll pay on the gains. So on the appreciation of that money through compound growth. And that can be a great way for those that want to do the fire kind of stuff, retire early. You want to retire at 50, but you can't touch your retirement funds until 60.

It's a good bridge. So for 10 years, it becomes that bridge account. If you've got 500,000 in there and you can live off 50, 60, 70 a year, that can get you to 60 to when you can start dipping into the other buckets like the Roth 401k, the traditional IRA, whatever it is. So there's a lot of options out there.

And for self-employed folks, they always go like, I don't invest because I don't have an employer. No, no, no, no. You have a solo 401k as an option the sep ira is an option taxable brokerage account hsa so there's you're not excused from investing as a matter of fact you're you're definitely not excused you have to be more intentional than the average bird because there's no employer you know over your head offering this to you and it's you know you've got to be intentional it's not as easy you got to do some

legwork but the nice thing about those options for self-employed folks is that contribution limits are higher. Yes, that's right. So I know there's a lot there. Especially with the solo 401k, you can really get into some good investing there. Oh, yeah. This is good. Juicy stuff. No one ever wants to just chat about investing options, Jade. Oh, I'll ease on down the road of some investing options because I like that. We talk so much about getting out of debt and sacrificing to win. Let's talk about what it feels like to finally get to take some of this money for ourselves. Set it aside. Let's learn what those steps are and enjoy it a little bit.

Don't overthink it. The key here is your savings rate, not how much and did you choose the right fund. You just do it consistently over time. So go check out that YouTube video, Investing for Beginners on my channel. This is The Ramsey Show. I am your host, Jade Warshaw, joined by George Camel. Give us a call.

The number's 888-825-5225. And we will talk to you about what's going on in your life. That's what Zach did. He's in Phoenix, Arizona. What's going on, Zach? Hi, guys. How are you doing? Doing good.

How are you? Doing all right. So me and my wife, we're on baby step number two, and we are pretty much set to get out of baby step number two and move on to three, probably about six months. Way to go. However, we ran we, uh, we ran into a roadblock. My wife is set to have surgery, back surgery here in a little bit.

We kind of held that off a little bit. I have her, uh, getting a second opinion from another doctor, but it's still looking like she's going to have to get surgery. The issue I have, it's pretty invasive surgery, but the issue I have is that she has a medical issue, and every time she's had surgery, there's issues that stem from that. And she goes out of work for, you know, several weeks. There was a time where she first started her job, and she's like, you know, four months into it, and this was just last year, but she's four months into it and she has to go on leave, but she has no time. And so she's leaving without pay. So my issue is, I obviously, I pray

that nothing's going to happen to her and, you know, it's going to be smooth surgery. Yes. But the offset chance with her medical condition, if it does have some issues or complications with it, would it be okay to cause baby step number two, save up some money just in the case that she has to stop going to work for a short period of time and then go right back into it when she's back? You said it.

Absolutely. This is what we would definitely call a storm mode. You have a medical situation that's coming. You know it's coming. You know it has the potential to be costly in more ways than one possibly. I 100% would do that. How much debt do you have left in the debt snowball? We have $25,000. Okay. And we paid off a total of probably about $22,000. We were kind of slow starting, and then I got her pretty much. We both sat down. We got on the budget together, and we went gazelle intense pretty much in April.

And so we paid off around 22 000 already very good what's the 25 that's left what does that make up uh it's a car uh car loan so we just uh two months ago we just paid off all the credit cards cool and now it's uh what's left is the car loan what's what's left on the so 25 on the car loan what's the car worth uh it's worth 27 um kelly blue book that was a couple months ago so i'd assume it'd be right around the same and what's the income let's say she's not working what will the income be gross per year yeah so her take home per month is oh the way i do the budget it's not necessarily per month because we get paid 26 times every year. Got it.

But I kind of plan just for that extra payment we're just going to throw to Baby Step No. 2. Kind of act like you live on the 24 payments. Exactly, yes. So she takes home every two weeks $3,900. Okay, and how much? And then all together it's $8,500. Awesome. Okay. Great income. I'm just trying to figure out here, because of your situation and how quickly you could clean this up if you just got a less expensive car. And it sounds like it's not a huge part of your world.

I don't think it's one of these, like, you got to sell the car tomorrow. What are you guys doing? But because of your tumultuous medical situation, if you sold this car, you walked away with two grand, how quickly could you save up the difference to then go get a car in cash that just gets you from A to B for a while while you get this emergency fund stocked up, which would help me sleep better at night if I'm in your situation? Yeah. And we did talk about selling the car at one point, but that was obviously before this medical situation happened. So, you know, not on the Dave Ramsey plan. We're just living the American way, right? And we're just, you know, buying car loan, car loan here and everything like that. So I got it for her graduation present. Oh,

this is sentimental. This is emotional now. Yes. It's a, it's a little bit. So, you know, she was on board. She actually said to sell it. And I know that was,

I know she said to sell it with good intentions, but in the back of my mind too, it's like, Hey, you, you went through, you know, hell and back.

I really want you to, you know, um, I think I really want you to, you know, I think we can pay this off pretty quick. And so now with this and the bump of the road, we haven't had that conversation since then. So maybe that would be- I think let's revisit it. Because I know you had a great motive

and pure heart going, man, she really deserves this car. But what you guys deserve right now in this season of your life is peace and freedom and levity so you can focus on her health instead of how are we going to make this payment and how is this going to pause our debt snowball? So if I'm in your shoes, I'm going to have a real hard conversation with my wife and go, hey, in the next two months, we can save up this much.

That will give us enough. If we sell the car, we'll have enough to go get a beater car for $5,000, $8,000 that will give us enough if we sell the car we'll have enough to go get a beater car for five thousand dollars eight thousand dollars that will get us from a to b until we get to solid financial ground with a fully funded emergency fund which i would have six months for you guys for sure with the health conditions hey speaking of those health conditions actually sorry i was gonna say speaking of your health condition or your wife's health, have you guys hit your deductible yet for the year? Or do you foresee having to pay thousands of dollars out in order to do so for the surgery? Oh, no.

We hit our deductible, and I have pretty good health care through my employer. So it's more covering the bills if she doesn't have income than it is the medical bills. Yeah, that would be mainly what it is. Is that, hey, can we get, you know, we'd be pretty tied down with losing her income. Yeah. Because it's almost half of it at that point. Yeah. And I don't want just something to happen and it just gets extended and now we're, you know, now we're trying to.

What's that car payment? That's $550. Man, freeing up $550 tomorrow, that would change my life if I'm in your shoes. Yeah. And the thing about this stuff is sometimes we get so connected to a purchase that we made because of sentimental reasons, because at the time it was a good purchase in our minds. But when you look at it the way that George said, which is, look, you can have $550 free.

Like, that's a lot of money free. You can always get a car again. You know, it's kind of like sometimes we think we can't, if we sell it, we'll never be able to have it again. And it's like, no, I bet if you sell it on down the line, you can have an even nicer car when the time is right. So freeing up that $6,600 a year of net income going towards that payment, I know you're going to pay it off soon,

but I'm just looking at the situation going, if this was any other circumstance, she had great health, she was going to continue to work, I'd say let's just pay the car off, do the debt snowball. But it just is worth considering to give you guys the peace as she goes through this surgery and heals that we don't have a payment in the world yeah and now we've got the emergency funds starting to get built up and i just think sleeping better at night is better than the sentimentality of the car i agree i'd want to take the fastest possible

path to get to that piece like you said because they've still got to clear out the debt. They would still have to think about funding their emergency fund and maybe saving up for a slightly nicer car after selling this one. And I just think that it feels like a huge sacrifice in the moment, but what are you getting? Like you said- And rarely do people look back with regret on those decisions and go man we shouldn't have sold that car because here we are debt free and it's just the worst and i wish i had that nice car so it's a good reminder though for those that are wondering do i pause the steps do i pause the debt snowball and the only two

times you do that is in storm mode and stork mode so if you know there's a storm coming the layoff is going to happen you're going to get fired if you know there's a storm coming, the layoff is going to happen. You're going to get fired, whatever it is. There's a baby coming. There's a surgery coming. Let's pause, make minimum payments and save up as much cash as we can. That's right. George, you made such a good point and I want to hammer in on it. I can tell you guys and George, I know you have your own stories. When you're getting out of debt, the sacrifices that you're making for some situations more extreme than others but never once have i ever looked back and gone man if only i had just bought that dress or if only i had just you know been able to get that steak dinner it would have changed everything i never i got lamb

bastard because i had sold some a few apple stocks i had from when i worked there to help finish off my debt snowball people are like this guy's an idiot. Does he know how much money he could have? I'm like, you know how much peace I have? You don't even think about it. I'm good, bro. I'm going to be okay. So do what it takes.

You will not regret following the Ramsey plan. You sure won't. It'll be worth every penny. All right. You're listening to The Ramsey Show. Give us a call. The number is 888-825-5225. Scripture and quote of the day. Daniel 12.3 says this, Those who are wise will shine like the brightness of the heavens,

and those who lead many to righteousness like the stars forever and ever jimmy hendrix said knowledge speaks but wisdom listens okay all right jimmy i know jimmy that's what i'm talking about jimmy um guys i want to take a moment before we take a call to tell you about something that's going on we are doing a series of webinars about budgeting. Y'all have been talking to us. We are listening. You need help with your budget. Who doesn't? It's not easy to just go out here for the first time and start budgeting. There's a lot of learning curves there, George. There are a lot of little things that sneak up that's like, hey, what if I don't get paid the same amount every month? Well, they self-select out and go, well, Jade, it's not for

me because here's the thing. My situation is very unique. Oh, everybody's an exception to the rule. I get that. Everybody's the exception. It's like, Jade, I'm a waitress, though. And, you know, I work on tips. Or I don't make enough to budget.

That used to be me, George. Or I make too much to budget. On both sides, people are like, they opt out. I'm like, bro, it's just an intentional spending plan. Intentional? You sound like somebody else. I will not say their name on the radio. The point is the budget is it's a tool. It's a tool that you use to get your money right.

And here's the fact. We know y'all are out here living paycheck to paycheck. The stats are telling us you guys are telling us by calling into the show. We want to help you. We're going to help you we're going to help you uh i'm kicking off this series of webinars i'm doing one next week it is august 9th is that correct yes i want you to sign up it's totally free okay 12 30 eastern time 12 that's 11 30 a.m central time look this is lunch break i'm saving saving my spot. That's a lunch break.

You can go in there with your public sub or your Subway sandwich. It doesn't matter if you get lettuce in your teeth. No one will see you because it's a webinar. And unless you ask, you know, you can ask questions, but you don't have to put yourself on the camera. So you can just eat your sandwich, sit in your car. You can pop it in the chat. You can get on audio only.

So don't be scared. You're not like on Price is Right here. It's just jade she's the star of the show and if for some reason you're like hey i signed up for the webinar something came up i wasn't able to meet to make it it's recorded so you will have a recording of it so there's really no reason to not sign up this is what you've been waiting for we're going to answer all those questions sign up for the webinar it's everydollar.com slash budgeting. Did we mention it's free? It's free.

There's two parts of this that's free. A, the webinar where we're teaching you. And B, EveryDollar is free. The budgeting tool. When I tell you guys about EveryDollar, I am not blowing smoke. I've been using this thing since conception, George. Since it very first came out back in 2016 2017 it did not have all the bells and whistles that it has now now it's got these features where even if you

have irregular income it's got that paycheck planning where it helps you see this is when you spend your money so that you don't run out because that's the missing step for a lot of people it's like hey i know i have the money budgeted it out, but somehow I'm still like coming up to zero. Too much month at the end of the money. Right. So you have to actually decide, okay, I know what I'm going to spend. But the paycheck planning tool helps you decide when you're going to spend it throughout the month. So good.

So many features. Guys, this is your chance. Don't miss it. Not one day. Day one. day one let's go all right George let's take a call we got Simon in Rockford Illinois what's going on Simon hey how are you guys doing good I have too much energy right now I'm sorry that I came in hot right she got riled up over budgeting man this is how we roll over here a A true nerd. What's going on, Simon? Yeah, so I'm 20 years old. I still have two years left of college. And basically, I'm just trying to figure out, come out of college

with the best path made for me to become a millionaire at a young age, or not necessarily millionaire, but be financially free at a young age. Um, so I have, uh, roughly $290,000 in investments. Well, okay. So, so, uh, most of it came from, uh, uh, inheritance about 252,000 is in an inheritance. Um, that's in a traditional IRA. Uh. What I put in is I have a $30,000 one-year CD at 4.75% right now. And then I also have $8,000 in Roth IRA, as well as I have $20,000 in a savings account. What the heck? Why are you calling us, dude? You need to be hosting your own show. You're going to be a millionaire if you did nothing else. If you leave the inheritance in that investment account account you will be a millionaire in no time right right

but your thing is hey hold on your thing is not to mess it up that's your thing don't mess it up by being so um i i don't know if i can say but so bent on trying to be a millionaire and trying to get there faster that you start us hair. Yeah, that you start investing in things that you're finding on TikTok and things that your buddy over here is saying. If you don't cool out and go, hey, this is pretty nice, you could mess around

and lose that money by bad investments. So George is going to help you out here. Yeah, so do you have any debt? No, I do not. And I'm fortunate enough for my parents to be paying for college. Awesome. But the main question I have is I would love to get into real estate. My parents have about 14 units of their own. I see where it gets them. But I would love to get into real estate as well because I'm studying physical education right now. And as you know, the starting salary around where I'm

living is, it's about 45,000. And I mean, that I assume I'm going to have to budget with that. I don't know. I haven't yet to pay my own bills and do all this. I'm just trying to figure out, you know, if I should take this money from this investment account and put it into a put it in a real estate unit, maybe even live in it like a duplex or a fourplex and then generate income off of that. So then on top of my forty five thousand, I'll have income as well. Here's what I would do. You got two years left of college. You've got this money sitting there. It's parked in the right place. Go to college. Finish that. And then, this is just me. George might tell you something different, and that's his prerogative. I personally would not invest in real estate until I was an owner of my own personal residence. Then I'm able to see, hey, this is what ownership looks like.

This is what it feels like. These are the types of repairs that I have to do. This is what it costs because you have, I'm not saying this in anything negative at all, but you, my friend, have been extremely fortunate. You got parents paying for college.

You got inheritance. That is incredible. But sometimes it's like, like you said, you've never had a budget yet. You've never had to pay for real things yet. And I would love, love for you to get that experience, just that real life. I'm using my income to make my life go round. And then we can start talking about what it might look like to invest in some real estate paying cash for it. Okay. Simon, the other piece of the equation is the 10-year rule on that inherited IRA.

Does it apply in your situation? Have you looked into that? That's a good point. So I'm pretty sure what happened was I got it about, I'd say, six years ago. And the rule with it was I could legally inherit it after 18 years of age. So I'm 20. So as soon as I turned 18, I changed it from a custodial account to my own because my mom's name was on it. And now it's all in my name.

And I talked to my advisor and I'm pretty sure I can just take it out. But there's no required like 10% per year for 10 years type deal? No, no, no Okay, i'd get some real firm answers on that and do some homework and digging and i'd also get a tax pro in your corner As you begin to do this thing because you are so far ahead of the curve And I love that you're trying to go. Hey, I want to manage this way I want to be a good steward of this What I don't want you to do is get so hung up on this idea of like, I got to have cash flow, bro. Like that's all you see on social media. It's all about cash flow. And I don't want you

to look up 50 years from now and have regrets because it wasn't all about cash flow. And you had to also live your life and you wanted to start a family and buy a house and not have all this risk going on. And so there's nothing wrong with just investing. I think you're going to be a real estate mogul at this point. Yeah. But I want you to do it the right way. Do it with cash. I don't know. That's so countercultural, Jay, to even say that out loud. Like, bro, you want to put down as little as possible and then you get the HELOC and then you refi, you're the Burr method. And I'm like, stop listening to guys on steroids who have red faces tell you all about real estate hacks.

Listen to pale guys who just live normal lives. What about me? What about me, George? Well, Jade, you're not out there yet. Pale guys and brown complexions. Listen to Jade and I. Anyone that doesn't look like Joe Rogan's angry telling you about real estate, that's who you should listen to. Oh, man, that does it for this hour of the show.

Man, when it comes to your life and money, you can tell me that you won't do it. But don't dare tell me that you can't. With Christ, all things are possible. Do you love a good day, Brandt? Want to see the latest Ramsey Show videos going viral? Check out your favorite moments from the Ramsey Show on YouTube. Go watch and subscribe to the Ramsey Show channel on YouTube.