The Ramsey Show - App - I Feel Guilty Spending Money Even Though We’re Debt-Free (Hour 1)

Episode Date: May 4, 2023

Dave Ramsey & Jade Warshaw answer your questions and discuss: "Should I take a partial lump sum when I retire?" "I'm debt free but feel guilty spending money", Student loan repayments resuming soon, The best options to grow wealth. Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Join a Personality-led FPU class. Click here Enter The Ramsey Cash Giveaway for a chance at $3,000! https://bit.ly/TRSgvwy Shop our bestsellers during the $10 Sale! https://bit.ly/TRS10Sale Want a plan for your money? Find out where to start: https://bit.ly/3cEP4n6 Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6 Interested in advertising on The Ramsey Show? https://ter.li/s64ye3 Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

Live from the headquarters of Ramsey Solutions, broadcasting from the pods moving and storage studios, it's the Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. Jade Warshawall ramsey personality is my co-host today thank you for joining us america we're glad you're here open phones at 888-825-5225 good to be back in the studio jade and i and a bunch of the ramsey personalities have been on the road we were in salt lake city last week, returned yesterday from Anaheim from doing an event out in CA in California.

And both both of you crowds were absolutely incredible. Thank you, guys. You were very welcoming. It was so good to be in both locations and be out in America seeing you guys. And we will never again after quarantines and stuff take for granted the ability to gather as a group and cheer on really good ideas and so we're really excited to be with you guys and the good news is we will be back on the microphone for a while yes we're not traveling for a while and so we'll be here saddled into this thing and answering you guys questions so thanks for hanging out with us and for all of the other Ramsey personalities

covering the bases while we've been hitting the road. The phone number is 888-825-5225. That's 888-825-5225. Lisa's in Charlotte, North Carolina. Hi, Lisa. How are you? Such an honor to talk to you, Dave. Hello, Jade.

How are you? An honor to speak with you as well. How can we help? I am doing wonderful. First of all, thank you for telling us the truth. You got it. Giving us a path and a hope that our future can be bright. There are not too many people that are doing that today, so thank you for what you guys do.

So here's my question. I'm 60 years old, and I have two retirement related questions. I'm retiring from my full-time teaching job at the end of this year from which I will have a monthly pension paid to me for the rest of my life. I have a one-time opportunity to take a partial lump sum maximum withdrawal which I estimate will be about $148,000. That'll reduce my monthly benefit by about $1,000 a month. My only debt is my house. Right now it's 230K. I'm estimating it to be about 215K by the time I retire at the end of this year. I think, Dave, you would tell me to take the one-time withdrawal and apply it to my mortgage,

which would reduce my mortgage to about $105,000 when I retire. My reduced monthly benefit would cover my monthly expenses, plus I also currently have two part-time jobs that I will probably keep for a while. So my first question is, is it the right decision to take the lump sum withdrawal? Yes. You're right. Now, here's the thing. You're not going to get a cash flow benefit from this until you finish paying off the mortgage, though.

That is correct. So you've got to knock because you're reducing your income by $1,000 a month, but you're not increasing your income by reducing your mortgage. You're not decreasing your mortgage payment by reducing your mortgage balance until you pay it off. So we've got to have a plan for knocking that other $105,000 out as fast as you can. Well, my plan was to keep the two part-time jobs that I have now because my monthly pension will cover all of my expenses.

So those other two part-time jobs. But you're quitting teaching. I am quitting full-time teaching, yes, but I also teach part-time. Okay. Why are you quitting at 60? Well, this is just my first retirement, Dave. Why are you retiring at 60? It's time for me to move on from higher ed.

So you just want a second act. Okay. Well, listen, step in and start doing some professorship online and some other things and make some serious bank and make as much as you were making teaching for the next two years and pay that mortgage off. I don't like part-time jobs when I still got a mortgage. I want you, and you're only 60. You're just a pup.

I appreciate that, Dave. Let me ask, can I ask a question in this? Sure, sure. So is there any point, if she continues to work full-time, even though if it's not teaching, couldn't she take that lump sum and invest it in better investments? She could, but we're but we're on baby step six and any extra money we get's not going into investments while there's still a

mortgage that's always going to go on the mortgage so that's where she that's why that's why she went there i see it correctly went there and but the but the problem is it doesn't gave it doesn't in the short term give you any net benefit until we knock that mortgage out so what i want to do somehow is gear up your income and your focused intensity, not crazy intensity, but let's get that $105,000 done because then you're going to not have a mortgage because of this move, and that's going to increase your net situation by more than $1,000. Agreed? Absolutely agreed, yes.

Yeah, so that's where we want to go. That's what we've got to get to for this to have a net effect overall because the 148th loan at the mortgage without paying it off does not change the mortgage payment. That's right. And so we've got to get to that other part of it. And it sounds like you're just done with whatever you're doing emotionally. That's cool.

I've got no issue with that. But there's people making bank as online professors, and you control your own time. That is true. Really good money. I mean, maybe more than you're making now. I don't know what you're making, but maybe more than you're making now. Ann's in Las Vegas.

Hey, Ann, welcome to The Ramsey Show. Yeah, hi. Thanks for having me. So basically, my husband and I purchased a house. It's 33% of our total income and we have about 84,000 in debt. Now we got into a Dave Ramsey show at this point because obviously that was pretty stupid. And now I'm nervous because I'm wondering if we should try to get rid of the house, but he says we shouldn't. If you can turn the corner without getting rid of the house, I'll probably keep shouldn't. If you can turn the corner without getting rid of the house,

I'd probably keep the house. Go ahead. That's what I'm going to say. I'm going to say how likely is it that you can increase your income by 8% and close that gap? Well, right now I am in the process of getting a job, so hopefully that goes through. I'll find out today, and that will help out a lot.

You're not working, and you're going to add how much income? Well, I'm retired military, so right now I make $34,000. But with the job I'm trying to get, I'll make almost $80,000. Oh. More? So you're going to increase your household income $80,000? $40,000. About $40,000. Oh, so you got $40,000. About $40,000.

Oh, so you got $40,000 in retirement from military. Yeah. Okay. So you're going to increase your household income, the 33% problem, by $40,000, right? Mm-hmm. Keep the house. Mm-hmm. Okay.

Okay, but here's the deal. You're looking in the rearview mirror. You got $84,000 worth of stupid, and you've got a decision on buying a house you couldn't afford. So this has got to stop. We have to turn around and go the other direction, right? Yeah. Like the worm has turned. You guys are going to get freaking serious now.

You're going to sell so much stuff the kids think they're next. Yeah, definitely. Yeah, definitely. And no going out to eat, Ann. You have $84,000 thousand dollars worth of debt oh and you don't need to go on vacation broke people don't go on vacation so let's get the 84 cleaned up is this okay am i okay with you yeah that's perfect we're doing we're using every dollar now we're going through um fpu so yeah we're trying to get together okay you got you got your act going. Okay, because I can sense a turnaround, but I wanted to enhance it.

I don't want to just increase your income for it to keep the house and then sit on this. It's not going to work. So, yeah, that won't go. This is The Ramsey Show. Jade Warshaw, Ramsey Personality personality is my co-host today open phones at 888-825-5225 chris is with us in atlanta hi chris welcome to the ramsey show hey dave thanks for taking my call call. So just a little bit of background. I'm 42. I am debt-free, half and all. And I haven't been debt-free all my life, probably the last 15 years. But I feel guilty every time I spend money. We have 401k savings. We invest money. I still work. My wife still works. But it pains me to spend anything over $100 sometimes. So I was wondering if you could tell me, do you still feel that even after 30 years of being debt free or whatnot because I feel it. Our house is paid off. We have no payments and I still get that clenching in my stomach every time we have to go do anything. I can't relax and have

fun. So I was wondering if you could tell me maybe how you feel or if you felt the same way after you got out of debt and built a a bunch of wealth it's not it's not guilt it's fear that makes sense and what that is is your as dr. John Deloney would say your body is remembering being broke and it's telling you that that you're spending is a threat it's a threat it's a threat it's telling you that your spending is a threat. It's a threat. It's a threat. It's a threat. And so your fear activates.

That's what happened to me anyway. Even 10 years after you got debt-free? Not 10 years, but for a while it did. And what I did is just what you've done. I just recognized it was happening, and I kind of, like you're doing, I started asking the question, what the flip's going on? I mean, what's wrong with you? You've got a million dollars.

What are you pissing and moaning about going to the grocery store for, you know? Oh, I drive my wife crazy. Yeah, I mean, that was me talking to me, not you, okay? But I'm just saying, I had to kind of go, okay, and again, I'll just bring, I'll channel my inner Deloney god help us but um yeah but the you're doing good uh but but the you know the the thing it um i had to do two things one is i had to say all right facts are my friends okay so what is your net worth, Chris? I would say probably 2.2. And you're 42 years old, and you're 100% debt-free,

and your household income is what? Around $275. Okay, so let's just be realistic for a second. If we took $200,000 in $100 bills out of your net worth and put it in the fireplace and burned it, he's now got cold sweats, Jade. I know he does. If we did that, if we did that, your life is not going to change 1%.

Really? That's a fact. No, that's a fact. Other than the nervous breakdown that you would have. But I'm just saying, but you know what I'm saying? Mathematically, are you as okay with 2 million as you are with 2.2? You are. We know that to be true.

That is a fact. It's a fact. So when you go and go on a nice vacation and drop $10,000 for your poor wife who's put up with you. Trust me, I just did that and I had a nervous breakdown. I know. trust me i just did that and i had a nervous break i know i know but the reason is you're you're acting like your your fear mechanism is activating as if you're broke and the facts tell us that that is a false signal and can i take it one further chris because i kind of relate to some of what you're saying um on sam and I's journey through this debt-free journey and then some,

I've had to go, there's been certain moments that I've had to go back and find where that emotion is coming from. And I've had to think back on what was the instance where that was ignited? Like, okay, it was when I asked for lunch money and someone blew up on me, right? Or it was because I did this. And that was the first time that that triggered that. And there was a phrase you heard. Yes. We ain't got no money. That was the phrase I heard growing up, Chris. And there's been so many times in my life I've had to go back and find where that came from and speak to it directly and

go, hey, if I buy this pair of tennis shoes right now, it's not going to break the budget. No one's going to yell at me. No one's going to, you know, and I've had to go back and say that if I buy this pair of tennis shoes right now it's not going to break the budget no one's going to yell at me no one's good you know and I've had to go back and say that if I buy what I would like to have for lunch at the grocery store there's no guilt there I'm not going to throw the budget off the family's not going to pay for I've had to say that and I think sometimes my guess is that there's some things that have happened that have caused some trigger in you and you got to go back and identify that and honestly speak directly to it and say hey i'm not there anymore and i'll tell you i'll tell you this another one another place we've dealt with this chris was um once i kind of started getting past it the fear the sheer it's not fear it's sheer terror that my wife sharon felt when we went bankrupt and lost everything and we had

a brand new baby and a toddler and the lights got cut off if i even have a similar body language or tone 30 years later towards spending like the emergency fund and it makes it activates that it triggers that inside of her we have to we have to just time out and back up because she has to start breathing again it because she i can suck it she's she feels like i'm doing what i did when i went broke for just a nanosecond and it activates and all of these lights light up in her in her her physical body changes i mean her her she gets pissed off from being really terrified again and it just doesn't i am yeah yeah and it it activates all fear and anger are best friends they run around together and so um terrible feeling yeah it is it is but here's the point okay number one facts are

your friends all you gotta do is when you start doing that, you just have to stop and go, now, wait a minute. That's not real. This is fear that's called false evidence appearing real. This is a falsehood. Us spending this money is not irresponsible, and it's not going to break our family. And you just have to talk to yourself and build the muscle then of doing that. The other thing you can do is you have a very specific process put in place and go okay like for instance sharon and i we do not spend or give more than a thousand dollars without talking to each other and if it's more than a thousand dollars we wait overnight also we breathe now do we have to do that mathematically today? Absolutely not. We got all kinds of margin.

But we do it as an act of respect to each other to keep from activating those scars, those wounds from having gone broke. And, you know, it was the first five years after going broke for me. And even today, I'm telling you that we still, if we don't abide by some certain processes that are safety valves, then we can still step back over that line. And they're emotional processes. They're not mathematical processes. Because again, we could give away, I mean, we could take X number of dollars and put it in the middle of the floor and burn it, and it wouldn't affect our lives.

We've got the money. It's not, that's not the issue. So mathematically, it's not that's not the issue so mathematically it's not the problem but but the action the body language the tone the process used seems impulsive irresponsible out of control immature and it feels like the old days that's right and boy it'll light your butt up it will i mean it's just another component to when we say money is, I mean, it's behavioral and it is. We can't act like these things didn't have an effect on us mentally and that that behavior didn't affect us because it does. Now, I am much more healed 30 years ago than I was 30 months after the bankruptcy. Yes. You know, 30 years later versus 30 months later. And so you should go through a healing process

but it's also just wise to acknowledge what's really going on here and then number one we're going to say oh that's not real number two you look at the actual ratios and go okay we're not being irresponsible so why am i feeling you know and then you learn to you practice your way through normal feelings versus wounded feelings this is the ramsey show guys there's some weird stuff going on out there in the work world in the labor market and it is crushing particularly small business owners they have had to deal with the great resignation, quiet quitting, and a lack of people signing up that are skilled workers for jobs. And they can't get their work done because they can't get the help they need.

It's been relentless. These participation trophies and helicopter parents are making snowflakes at a record rate. And it's a problem. It's a real problem. Now, I now i gotta tell you gen z and millennials we love those generations we got a bunch of them here they're absolutely incredible and there's some of them that are useless now the ones that are useless aren't here we don't let them work here but the uh the ones that are awesome are absolutely amazing we got a bunch of them on this team so to put this chaos in perspective a political

economist nicholas eberstadt found that seven million able-bodied males have just left the workforce they're just not looking for work they're not in the unemployment statistics they're living in their mother's basement their girlfriend's house or their wife is working and they are just not choosing to work. This is insane. It's not good for them. It's not good for the economy. Business owners need to know how to make it to the other side of this mess. So tonight, Thursday, May the 4th, yes, I know it's Star Wars Day.

I'm teaming up with micro and five bestselling authors and experts for our America's Labor Crisis live stream. We'll be doing the live stream from the Ramsey Event Center here this evening. Mike Rowe came back with us from L.A. when we were out there yesterday, and I've had the blessing of spending a lot of time with Mike lately, and I really think the world of this guy. We're going to talk about work ethic, and we're going to talk about how to hire in these situations,

and we're going to talk about how to lead properly so that you attract the right kind of people, and we're going to bring in all these experts of what's really going on because there's some very interesting dynamics in the marketplace right now. So if you are in business or want to be in business and you want to learn about this labor crisis that's going on, it's a free live stream tonight, ramsaysolutions.com slash labor crisis. It'll be right on the front page of the website at ramsaysolutions.com. And boom, you can sign up, watch it starts at 7 p.m.

Central Time. And we would absolutely love to have you so jade the department of education has issued guidance to student loan companies to begin collecting payments in september so you mean these people really want their money back and you mean the president's actually going to let them do it he he's announced that he's running for re-election i know now he's going to make you pay your student loans is he though do you think he's going to try to kick it down the can kick the can down the road one more time no you think this is it i think he i don't think the department of education would have put this notice out if they weren't going to do it because they've not done this in the future that's true that is a very good point all of the other

deadlines that were approaching they were silent that's true he kicked the can he kicked the can he kicked the can and this time i think he's going to do it now i have to have another i have to have an alternate theory and that would be okay so when we get up closer to election uh it's going to come up that he didn't really forgive the student loans of course course. Unless he does something again. So expect another announcement during the election year, but also expect to start paying your payments again in September. That's true. And I can't help but think about the effect of this on folks because I think the average student loan payment is about $480. And people have gotten, I i mean it's been three years people have gotten so used to three years three years that's unbelievable that's crazy and people have i mean it this

is your lifestyle that people bought houses based off of that they don't have their student loan payments yes and they bought cars dave based on they don't have student loan payments they bought look they traded in that 480 student loan payment for car note for 480 yeah but don't waste a good crisis because we had a we had a quarantine that was in in our area was about 30 days yeah and um but we got three good years out of it three years so i wonder what's the crisis i just wonder dave when when those payments hit august 31st is supposed to be that that magic date and i just wonder how this is going to affect people's financial world i mean think about it people overspent like crazy here's the other thing from a political standpoint you got to think about this

you can't wait until just before the election to do this if he does it now they're going to be pissed off at him that's what i'm saying forget about it by november next yeah that's true so if people have the attention span of a gnat they don't remember they can't stay pissed off for a whole year yeah and so 14 months that's true so that that it's really i mean you have to know that these are political animals and these political animals function 100 of the time on instinct and the instinct is politics it is not reality they may or may not forget they may forget it depends on the outcome they'll forget it because if this if this causes folks to have to change their lifestyle, they might still be bitter. They'll forget.

They'll forget. Because they can't. I'm telling you. You're right, though. I mean, you're right. People do forget quickly. I mean. So the White House announced last November that federal student loan payments would resume

60 days after the Education Department is allowed to initiate its student loan forgiveness plan or after the Supreme Court litigation is resolved whichever comes first in february the supreme court heard arguments against president biden's student loan forgiveness plan and they're expected to issue a ruling in late june or early july and so basically they've given him a tip of the hat and said uh we are not going to rule in your favor that's what it is and so j they've given him a tip of the hat and said uh we are not going to rule in your favor that's what it is and so july plus 60 there it is yeah july plus 60 wow it's an omen what's activating it is the supreme court thing yeah so he's gonna lose and he knows it and they're being kind by giving him this forewarning yes well they weren't supposed to do that but they do that

and now this is your warning to get your budding gear well i mean why did you get ready for this did you think it was going to go away dave people thought they thought wrong i know they didn't think they thought thinking is a lost art form seb Sebastian is with us. Sebastian's in West Palm Beach. Hey, Sebastian, how are you? Hey, Dave. Hey, Jade. Thank you so much for having me. So my question is, I bought a house last year, August. I'm a software engineer. At that time, we were working hybrid where we go to the office twice a month. So once every two weeks. And I was looking to buy a house and everything in my area was just out of my budget or everything that wasn't my budget. Me and my wife didn't think it was appropriate for us. So we bought a house about an hour and

a half away from my office. And I figured that drive is doable once every two weeks. Fast forward almost a year now and now my job is basically saying we're still hybrid, but we're going to need to come into the office twice a week. And what I'm trying to figure out is, I mean, I guess that drive is a little doable, but I've been wondering if it's a good idea to maybe rent my house out

and buy something else closer to my office. Why would you rent the house out? Why would you not just sell it and purchase a new house closer to where you're living? Working. So I've thought about that. Yeah, so I've thought about that. Me and my wife love the house. She doesn't want to give it up for nothing in the world.

But you wouldn't be living in it. So our plan would be to rent it out. I know, but you're putting renters in a house you love. This is not something you do to things you love. Okay. She may love the house. I mean, I get that she loves the house, but you guys are trying to solve a problem. And sometimes when you're trying to solve a problem, you've got to make a sacrifice.

And that's really what it boils down to what about changing jobs so i mean i wouldn't change my career but maybe to a different company yeah it's close to where you live i could probably as a software engineer there's time where i'm not now it's not a big market for it you would have to go more closer to the bigger cities, or unless I go remote, because I've thought about that idea as well. It's just for the tech industry right now, it's a little bit tough. No, it's not. No, it's not. There's a shortage of software engineers.

I've got three on the books to hire right now. Move to Tennessee. Work for us. We need you. Oh, my gosh. No, there's not a shortage. There might be a shortage of remotes. Remotes dying quickly.

No pun intended. But, yeah, I would sell my house and move closer to work, or I would change jobs. I would not keep it as a rental. Bad plan. Bad plan. This is The Ramsey Show. jade warshall ramsey personality is my co-host open phones here at 888-825-5225 if you're new to ramsey and a bunch of you are we know that based on our ratings increases recently our increased following on social media and of course the podcast and

rankings are going through the roof thank you guys if you're brand new and you were trying to figure out what it is we're speaking here around here because we do kind of use a different lingo language vernacular then uh just go to ramsey solutions.com click on the get started button completely free no salesman will call and we'll help you figure out where you are and start teaching you and giving you some direction on things like baby steps and debt snowballs and all those kinds of things. And so be sure and check all that out. Jennifer is with us in Detroit, Michigan. Hi, Jennifer, how are you? Hello, thanks for having me on. Sure, what's up? Well, I'm looking for your opinion. I'm new at this, baby steps, I guess you would say.

I am 60 years old, divorced. I co-care for my mother who has dementia. But I have 600K in a professionally managed retirement account. I own my own home outright. I own two own home outright. I own two rental homes outright and I own a development lot in the golf course community that I'm gonna sell to a developer. What I'm wondering is how I grow my wealth.

Do I go, do I put my money from this land that I'm gonna sell into a professionally managed account, or do I put it back into real estate? Wow. You've done such a good job. Well, I think you're probably a whole lot better than you think you are. Right. Everything you told me was wisdom. Okay. Well, that's good to hear. I just need to make it last for my life. You're fine.

You're going to be okay. You're going to be just fine. What's your home worth? It's about a million dollars. And what are the other pieces of real estate worth? Let's see. Total, let's see, I have two rental properties that are probably a million two total. The lot that I own is a million plus.

So you have almost a $4 million net worth. Yeah. You're 60 years old. Yeah. I think you need to be teaching the classes, not answering the questions. Asking questions. Well done. Well done. So let me tell you what you have done so far okay so far you have kept your investment portfolio very very clean and in things that you felt comfortable with and understood real estate and managed accounts that's where all your wealth is paid for real

estate i might add okay right so why don't we just do that i mean you're four million dollars net worth is 60 years old nobody can argue with your results well that's good to hear i mean you didn't do it in the last six months in crypto and then lose it four months later right no no you're not you're not you don't live in stupidville i mean so absolutely i i would be the one asking you questions jennifer you've done such a great job yeah i think you sell the lot because you're going to there's no question about that and you don't want necessarily a million dollars tied up in a single building lot that's not creating an income. And you're going to buy some income-producing properties or you're going to put it into managed accounts. Or you could do both.

You could buy a half-million-dollar income-producing property and a half-million dollars in a managed account. Okay. That'd be okay. All right. So do you like the real estate rentals um it's okay i mean of course you know rentals are a lot of work and finding the right people and so forth and so yeah it's okay i mean i i wouldn't i mean i do it because i need to so yeah well it's it's if you don't manage it well, it doesn't produce.

But when you go through the extra hassle that you don't have with the managed accounts, you make more money on the real estate than you do on the managed accounts, but you have more time invested. Agreed? Right. And I only have a couple, so it's not that big of a deal. Yeah, exactly. It's not like I have a lot.

So maybe half and half then. Or I don't care. if you had answered the question said you know i love real estate i think real estate's the place to be it gets me excited i'm gonna go buy a million dollar i'm gonna go buy a little a little small strip center and that's in a nice area it's gonna be easy to rent to some retailers and i'm gonna make some money that way have a different kind of rental property and because i love real estate that would be an okay answer or i want to buy two more houses or three more houses. That would be an okay answer.

Or I hate dealing with renters. These two are about all I want, and so I'm going to dump it all into managed funds. All of these are good answers. Okay. It's what do you want to do. But here's what you did. I want you to hear it loud and clear. You kept it simple, and you didn't put money in things

unless you understood them and you've avoided fear and you've had a lot of peace well i've had a little fear well but i mean by and large you haven't had a lot to be afraid about you don't have debt yeah you've got a big pile of money you're 60 years old i think you're highly successful i think you did a unless you got divorced six months ago and your ex-husband did all this uh i'm very impressed oh well thank you okay well that's good to hear yeah i think you did a great job and i would just i would do more of what you have done and uh by the way this is normative for the those of you out here listening when we study million millionaires, what do they do? They're pretty boring.

Yeah. Yep. Paid for home, retirement accounts. Money invested in managed accounts. You know, it's just, they're not doing double backflip family limited partnerships that somebody heard about on Midnight or tic-tac you know we're not we're not getting our financial advice from the chinese social media channel oh my god you don't think she rented out a bought a quadplex and lives in the kitchen and she's not 57 million dollars in debt and thinks it's so it thinks it's sexy no she, she's not. She's brilliant. Very wise.

Yes, very cool. Very calm. But here's the thing. When I have talked to, we used to do an event called Wealth Something. I can't think of what it's called now. But when I was talking to these wealthy people that came to this thing, they all felt like that they should be doing something more complicated. And yet all of them are sitting there with two, five, $10 million net worths.

And the stuff they're doing is working. And it's very, the KISS principle, keep it simple, stupid. And man, I learned from that. I learned from that. I don't do anything. I buy real estate. I do the same thing she does. I buy real estate that's paid for as an investment.

I increase my generosity factor yeah and i and i invest in mutual funds well that's really all i do the infomercials make you think there's a secret it's the secret that's only for the wealthy when you come from an area that a group of people that doesn't have money then you you hear all the mythology about rich people, all the theories from poor people about rich people. That's right. That's right. And it's like unicorns and skittles and rainbows and stuff that people like us don't understand. And so when people like us actually get there, then we think we did something wrong.

Oh, wow. Yeah. And it's just not true. You did exactly what you're supposed to do. So keep it simple. Stupid is a great rule. That's for me. I use it for me.

And put money only in things you understand and that you have peace about. And be playing long ball. We're not trying to get rich quick. We're thinking about 10 years out, 20 years out, 30 years out, which is why she's bailing on that lot. Yeah. She thinks that lot has peaked that's and she's probably right i would have loved to have interviewed her just a little bit further to find out a little bit more how she exactly how she did this and the time frames and all of that well she mentioned she was divorced so i don't know when that occurred but at some point she got a lump sum and a broken heart. That's right.

And in the middle of those scars and tears had to be wise. That's right. And fear had to be wise. And something led her in up this path. That is a really, really good path. This is not a caller. We can take credit for their results because she had not followed us.

Yeah. She's new to our stuff. So, but she's followed common sense which is what we talk about same thing we teach yeah yeah very very well done very impressive very impressive so this is like when someone uh gets a big life insurance check after their spouse dies it's the same thing i want you to i i want that fear that that broken heart to motivate you to go slowly yeah and to make good wise careful decisions same kind of a thing there and man she just did a great job with that just amazing very very cool i love it

ah that puts this hour of the ramsey show in the books 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.