The Ramsey Show - App - I Have Over $300,000 in Debt! (Hour 2)

Episode Date: March 17, 2021

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Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's The Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host, Dr. John Deloney. Ramsey Personality is my co-host today here on the air. Open phones at 888-825-5225. That's 888-825-5225. Starting this hour off is going to be Lance in Amarillo.

Hi, Lance. How are you? I'm doing well, Dave. How are you guys? Better than I deserve. How can I help? Very good. Hey, I'm really calling you guys for, I guess, a dose of wisdom here. I'm pretty sure I'm in a position that I could retire, but I don't know if it's wise for me to. Okay. In what way? Is it unwise? You don't have enough money or what? Well, I mean, I've got a net worth of about 3.2. Okay. In what way? Is it unwise? You don't have enough money or what?

Well, I mean, I've got a net worth of about 3.2. Okay. So I think we're okay. Well done. Thank you. Did you inherit that or what? A little bit. A little bit of farmland. I did. About 400 probably of that. But the rest of it is just paying attention. Yeah, well done, man.

You paid a lot of attention. Good job. So, Lance, I know some young guys with that kind of money who've semi-retired. What's the hesitancy in your heart here? Well, my wife's health is marginal. She has some gastrointestinal-type issues, and so I'm needing – well, I have very good insurance while I'm employed, and I just am hesitant to leave that behind. I'm 60.

She's 62. So, you know, we're a little way away from Medicare and those kinds of things. Have you investigated just buying something like a Blue Cross Blue Shield policy through one of our ELPs? I have, and, I mean, it's clearly, you know, I don't know much about the coverage that it supplies, I guess. You don't know much about the coverage that it supplies, I guess. You don't know much about what? The coverage. Oh, yeah, you would want to know that. So I guess I would sit down with an endorsed local provider on health insurance

and learn the coverages. But if you can buy health insurance that will cover her issues, then why would you not retire? You know, I don't know it's just uh i probably would i probably would uh lance what's your trade what do you do out there in amarillo i'm an i.t director where at uh insurance company okay okay so you probably could do a lot of side gigs at your schedule however you wanted to and work half time as in a lot of it things you probably have the skills to do that um and you know a little bit of contract work here there if you just want to stay busy keep your skills sharp that kind of thing for the fun of it um and buy some insurance but you know regain uh a lot of freedom a lot of independence by going ahead and

retiring if you want to do that you've got the money and if you've got the health insurance if you want to work work i don't care you don't have to retire but you don't have to work either right well it you know it's uh the work the getting, you know, I've been doing it for nearly 40 years, and it's getting old. Yeah. And I suspect you could probably do a lot of the same kinds of things on your schedule and less hours, make pretty good money, and it wouldn't be as burnout for you. But the whole situation is what grates on you. Am I wrong? No, that's exactly right.

It's the 8 to 5 and all the stuff that goes with corporate life. Well, I don't ever recommend, I don't say ever, but I do not plan to quit working completely. Because your brain and body will quit on you if you do that, right? I just do not. I want to be doing something. I will be wandering around this building spreading hate and dissension in one way or another, right? But I do need to downsize and offload some of the things that I'm doing over the next 10 years. I'm 60, and it'll be good for the company, but I'll be here on the air.

But some of the internal stuff I do, I don't need to have my hands in everything ongoing, and you don't either, by the way. So you could do a similar thing, like a graduated thing rather than a truncated thing, meaning you gradually, by leaving there and picking up 25 hours of contract work that you do at your leisure, you don't need the freaking money. You just need to keep your brain busy. Yeah, and Lance, I'm going to make this geographic, but it's not because this is happening to people all over the country. But there is a West Texas ethos that a man is his job. And if you quit working, you kind of quit ceasing to exist.

And it's just the way you've got farmland. You've got your hands in that. You're an IT guy, which means you've probably been on call for the last 40 years. There's just this sense of this is who you are. And now you're faced with the woman you love more than anything else in the world. She's got health issues. And you want to spend time with her. And you're worried about this.

Put that at bed, man. You're a good man. You're a good husband. You've put in the world. He's got health issues, and you want to spend time with her, and you're worried about this. Put that at bed, man. You're a good man. You're a good husband. You've put in 40 years. You've worked hard. You've clearly, like Dave said, have the money. Sit down and get with somebody who knows that market out there in Amarillo and reimagine some things and get some peace in your heart.

Spend some time with your wife, like Dave said, 25, 40 hours a week doing work that you want to do that's exciting. When you want to do it. When you want to do it, yeah. Or don't, right? Choices, yeah, or don't. The choices are there. I agree with everything you said except that it's a West Texas thing.

No, I was going to say, it's everywhere, yeah. It's an everywhere thing. It's everywhere. It might be a boomer thing more than a millennial thing but uh but this idea that that uh they're because our generation accurately recognize there's dignity in work i was gonna say i think the millennials have flipped it where relationships are everything and work's just not a thing and it's not something you need to do there's dignity in work we are made to work that's right there's extraordinary dignity there so there's something that does for your psyche

for who you are it gives you a sense of meaning a sense of purpose assuming you're doing something that's not immoral or wrong or whatever but the uh uh and it can be literally working on the farm absolutely if you got your big west texas ranch there you know that's right so um but If you've got your big West Texas ranch there. That's right. But you've got the money. Get the health insurance in place. Imagine some part-time contractual things. Do that over the next 90 days and retire. That's what I would do if I were in your shoes. Absolutely.

Because I think you're done with that place you work with emotionally. I can hear that for sure. You've stuck it out. They're not mean, but you're done with them. There's almost this request for like, is it a character issue? And no, it's not a character issue. It's not at all. It's not at all.

But good for you, Lance, for setting yourself up like this. Yeah. Good for you. Absolutely. You might, and you may have enough land. He runs a big cattle operation or something. You know, I was with a guy the other day on 8,000 acres. That just blows my mind.

You know, you can raise some cattle. You can put a couple of cows on 8,000 acres. That just blows my mind. You can raise some cattle on 8,000 acres. You can put a couple of cows on 8,000 acres. You can work it out. And then you've got to go find them. You've just got to dig that bell out front. Don't stop running. Yeah, right. That's a lot.

That's a lot of square miles. But it's a different mindset. And so just find something that you put your hand to. Make sure your health insurance issues are cared for, your money. You've done it. You did it. Touchdown. You're an everyday millionaire.

Proud of you. Well done. This is The Ramsey Show. This time last year, we didn't know how our lives were going to change. We didn't have a clue that COVID, job loss, and homeschooling were about to take over our daily existence. And you may be feeling like last year got away from you. Maybe you lost complete control of your money, or maybe you had to find a new job quickly to make ends meet. The bad news is a lot can happen in a year,

but the good news is a lot can happen in a year, which is why now is the time to think about where you want to be this time next year. And if you're looking for a proven plan to get back on track, our number one best-selling book, The Total Money Makeover, will walk you through the seven baby steps for getting out of debt faster, creating a budget you can stick to, building real wealth, and becoming outrageously generous. Get your copy of The Total Money Makeover today at the online store at DaveRamsey.com

or call our Ramsey concierge team at 888-22-PIECE. That's 888-227-3223. Dr. John Deloney, Ramsey personality, is my co-host today here on the air. This is the Ramsey Show. Our question of the day comes from Blinds.com. They have a 100% satisfaction guarantee. It means even if you mismeasure or you pick the wrong color, they'll remake your window blinds for free.

You get free samples, free shipping, and with the new promos they run every month, you'll save even more. Use the promo code Ramsey to get the best possible deal. Today's question comes from Lisa in Kentucky. She writes, my husband and I are debt free. The house that we live in was purchased as a gift to us from his parents. The house

is completely paid for. However, there's always a however, Dave. The house is not in our name. I do not feel secure without the house being in our name. We have a great relationship and I trust my in-laws, but I have an issue with this. What should I do? So my first thought here, Dave, is if somebody buys a house for you and gives it to you, but it's not in your name, it's not your house.

Is that a poor way to look at that? No, it's not. It seems like they bought a house and letting you live in it. No, not it's not a gift right until it's in your name there you go so is it out of line here to have that conversation yeah i and i think the way you always have a conversation like that is it's very very important to put a lot of icing on the cake before you start talking about this and the icing a lot of sweetness yep and that's gratitude absolutely how grateful you are and i would never want to seem ungrateful and we're not ungrateful and we are so thankful and so forth um it does make us uncomfortable that it's not in our name and we want to know when we're going to

get it into our name or we're getting a will done and we need to make sure all these assets flow in a certain place yeah that's fine but but bottom line is is that this is weird yeah yeah i would not give my kids a house and leave it in my name okay yeah it's just because then it's not their house it's not their house. It's not their house. Yeah. I mean, let me give you an example, okay? Her father-in-law is working second shift, and he falls asleep at the wheel, and he goes across the center line, hits somebody, and a kid is killed on the other car. They're taking that house, too. They're taking that house.

That's right. Because it's his asset. Yep. When they sue him for $500 million, the judgment lien will be on the house that is not hers. Right. Hmm. And that's called an accident. Right. That I described.

Absolutely. I didn't say the father-in-law did anything wrong. No, no, no. I didn't call him a drunk. He wasn't drunk driving. I didn't call him anything. I didn't say anything negative about him. Right.

But it's just, you you know he could have a business go bad and get an irs lien and guess what the irs lien is on all of his assets right and this house is his asset not hers right so and the other piece of advice i would just give you is um uh you don't talk let your husband talk it's his parents you can sit there with a smile on your face and the only thing you're allowed to say is how grateful you are right i want you to know how grateful you are right and you're not allowed to make the uh make body language or grimaces or words that are part of this conversation that has at its essence conflict in it because you're going to get labeled as the cause of it ah you're going to be labeled as the dissension but in the family yeah right yeah the evil

it would have been okay if it's my son but his wife got involved there you go so they say something along the lines of well we will we're not comfortable doing that now but we will in my head i immediately switch to this isn't our house we are living rent-free in my parents house we now are saving up for our own place yep and then i'm off to the races there exactly i'm gonna use i'm not gonna sleep over it thanks for the free rent there you go and i'm gonna use that to save up and buy my own house i'm not gonna throw a fit about it i'm not gonna whine about it we're gonna go buy ourselves a house yeah well you said it was a gift we're moving on we're moving on we're just gonna look if you're not gonna put it in my name it's not a gift you

gotta have that clear logic in your head so the other thing about this lisa is is that you want you need to hear loud and clear from john we're saying you're right absolutely yes you're right you're not crazy this has got some weirdness on it there's something weird here and i don't know what it is there may be a simple thing that they've they haven't had good tax planning that nobody showed them how to do it without getting in without getting a gift tax bill because you know if they'll see a good tax planner they can teach them how to do uh to transfer an asset that size as a gift without having any gift tax under the unified estate gift tax credit and it's one piece of paper with their filing of their taxes this year.

And unless they have an estate over $20 million, it won't affect their estate taxes a dime. So there's lots of ways to do this. They may just not know how to do it. And there's, you know, but if that's the only reason, but I'm going to guess and say that's not the reason. I know something about this feels icky, Dave. Yep, yep, yep, yep. But about this feels icky, Dave. Yep. Yep. Yep. Yep.

But it is the daughter-in-law asking. Right. Isn't it interesting that the son didn't ask the question? He's the guy I want to talk to in this. Yeah. Because he's the one going to have to do the talking. Right. If this is handled properly.

He needs to deal with his mama, not his wife dealing with his mama. Yes. Because I can just tell you, this is how this is going to go down. Do you feel like paying off your debt is going to take forever? Well, paying off your debt won't take forever. We can show you how. We do it all the time. It's what we do here. Ramsey Plus is where you get out of debt faster. You'll become debt-free. You'll be spending money without worry.

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Jackson is in Oklahoma City. Hey, Jackson, what's up? Hi there. How's it going? Better than I deserve. How can I help? So I'm going to be moving to Florida in two days. I currently live in Oklahoma.

I'm going to be doing work for my girlfriend's parents, they own a roofing company live in Oklahoma. Um, I'm going to be doing work for my girlfriend's parents, playing on a roofing company down in Florida. Um, and I'm estimating to make between five and 9,000 a month, you know, it's a sales job. So it's kind of, it's kind of a rough average. Um, I have about 5,000 currently in savings. And then, so as may not come back roughly with 20,000, uh, after the three months, That would give me $25,000 to put down. I was thinking about putting down on a duplex and then renting out the other side to get some income to pay for that mortgage. Do you think I should hold on and still work a little bit more and save some more money? Yes.

Or whenever I come back, based on that number, purchase a duplex? Yeah, I would just wait. I appreciate the idea that you're trying to create some assets and trying to create a baseline here to start to grow your wealth. But number one, I want you out of debt. Do you have any debt? I have a car loan. Yeah, you need to pay that off first. I have about $3,000 left on that.

So, I mean, I can go ahead and pay it off. Good. So you think I should do that now? Well, or as soon as you make the move, one of the two. As soon as you get your first check in. Let's get that cleared up. Okay. And then you need an emergency fund of three to six months of expenses.

And then if you buy a duplex and 18 months later are married to this girl, you're going to sell the duplex and buy a house that she wants to live in because she's not going to live there. And so instead, I would just short-circuit that, and let's wait and pile up the cash for after the marriage to buy a house. Okay. And then I also have about $8,000 in a mutual fund and then $4,000 in just like a Robinhood account that I've been investing in.

Okay, good. Then go ahead and pay the car off today. Okay. And then whenever I go to purchase a house, do you think I should liquidate that and then use that as a down payment or go ahead and keep those in there? Yeah, you have your emergency fund of three to six months of expenses and a simple savings account just for rainy days,

and then everything else is going down on this house because the goal is to pay the house off as fast as possible after you buy it. Okay. Well, the main reason I was thinking about duplex is i wanted to hold on to it and then use as a rental property down the road but you think i should go and skip that and just purchase a home yep yep yep i want you to get some rental property later but i don't want debt on the rental property and um and i don't want you learning to be a landlord while you're learning a new job and while you're dating the boss's daughter yeah i don't want you learning to be a landlord while you're learning a new job and while you're dating the boss's daughter. Yeah, I don't want you counting any future dollars that you are earning from the father of your girlfriend. That just, man, you're setting yourself up for triple heartbreak, brother.

There's just so many things can go wrong here. And when they go wrong, they're all going to go wrong. He just slipped off the roof, officer. I don't know what happened. So, yeah, brother. Yeah, let's count those checks after they're in your hand man yeah yeah good sounds fun sound like you got an adventure ahead of you oh that's the most passive-aggressive thing i heard you say today dave it's an adventure you know i would tell you're crazy but you are

it's gonna work out it's gonna be awesome be awesome. It will be good. It's going to be awesome. This is The Ramsey personality is my co-host today here on the air. Open phones at 888-825-5225. Megan is with us in Tampa, Florida. Hi, Megan. Welcome to the Dave Ramsey Show. I see on my screen you're debt-free. Yeah, thank you.

How much do you pay off? $98,593. That's a lot of money, Megan. And how long did this take? Five years Wow and your range of income? Started off at $48,230 and is now $51,441 Cool, cool

What do you do for a living? I'm a speech and language pathologist at an elementary school Very good So what kind of debt was your $99,000? I had a Visa card through my bank. I had a limited card, a Macy's card, my car payment, and student loans. So you were kind of normal. Yeah.

Deeply in debt and broke. Yes. How old are you? I'm 39. So what happened at 34 years old? I just lost track. I was living on my own. Just kept on spending my money.

What woke you up? Not being able to pay my bills, really. And overdraft from my checking account, from my savings account. And just, God, really. I mean, you know, he's the one who woke me up, too, and the debt. So just looking at the overdrafts and the no money scare you? Yes. So you're scared straight?

Yes. Love it. Me too. Yep. Me too. I don't ever want to go back. Nope, me either. Life is too freaking short.

I remember one night, precisely, I could take you to the living room and the desk I was sitting at, I could see it in my mind as clear as anything. I tried to balance the checkbook. Back in the old days, we used to reconcile a checkbook by hand. It was not on the computer, and it was certainly not on the Internet. There wasn't one. And when I balanced the checkbook, I realized, comparing it with the checks that the bank had sent me, that I had forgot to post some of them,

and that I was $400 in overdraft, and I remember sweat on my upper lip. I remember my heart racing. I remember sweating the palms of my hands, and it was cold, cold sweat. I was so out of control and terrified and i just said i'll never want to be there again ever right i remember sitting at work at the end of the day with a co-worker friend and he would help me balance out my checkbook because i was awful at it

and it didn't work nope overdraft overdraft overdraft so what'd you do you hit the bottom you got scared straight tell me what you did what was the first thing you did well i was attending a local church and i was talking to a friend at church one day telling her about my finances and she wanted to know if i heard about Dave Ramsey, Financial Peace. And I said no. So she was telling me more about it. And then she introduced me to Aaron Littles, who also, him and his wife did their debt scream through you.

I met Aaron Littles. He talked to me more about it, wanted to hear my story. And he offered to sponsor me to take the Financial Peace University at the church. Wow. It was a blessing. Wow. A big blessing. I'll bet you'll do that for somebody someday, won't you?

Yes. Yeah. Wow. Very cool. Five years is a long grind. What kept you going for five years? I didn't want to disappoint God. I didn't want to disappoint Aaron, and i didn't want to disappoint god i didn't want to disappoint aaron and i didn't want to disappoint myself and i did not want to live paying other people back

so you just kept at it that's 60 months you just kept at it kept at it kept at it yes you really got disgusted yes you got so disgusted it lasted five years three extra jobs on top of being a speech path that's already a job that takes a lot of patience and time what were your job what was your job i did my first uh side job was home health care so after my full-time job i went and saw clients in their home and i did that for the five years and then within the school district were offered what's called T payroll so we were able to sit in on staffing meetings and I would get paid for that and then another friend offered me a side job to work under her for doing brand ambassador where I went into grocery stores liquor stores and I handed out samples of wine and liquor for like 18 to possibly 25 dollars an hour for three hours

that's how you made it five years let's be honest it was the alcohol yeah so I did that off and on. That was, you know, sporadic here and there. And then Aaron, he offered me, two years ago, he offered me to work on the side doing his recruiting company that he built up. So I would do that after work as well recruiting nurses via the phone this guy has made sure you won oh yeah he is amazing he's amazing what a great mentor really very proud of him very proud of you well done all right rock star you did this you're a hero i mean you bust

through you're by yourself three jobs you lean, you lean in, you keep at it, you keep scratching, you keep clawing, you're scrappy for five freaking years, and you pay off $99,000. You are an impressive young woman. Now you get to mentor somebody else like you've been mentored. There's a few people listening to this. One of them is just like you were. Tell her how to do it. What's the key to getting out of debt? Getting mad, sitting down, getting an accountability partner,

putting all your debts and monthly income on a budget, and just go at it. And if you can get a second job, go for it. Sell stuff. Stop eating out. Stop buying stuff that you really don't need. That's how you do it. You did a lot of sacrifice for five years.

Was it worth it? It was. It was. What's your big goal? When you get done with this and you got a pile of money and you're a millionaire you're chris hogan everyday millionaire what's your big goal what do you want to do with money to invest save give be healthy enjoy life there you go retire without any financial problems there you go well done i'm so so proud of you i know erin is

we are all we're all of us at ramsey or we love people like you you're an incredible hero you're out there doing it you're scratching and clawing and making it happen nobody handed you nothing you went and took it legally and morally took it. Well done. Hard work, sacrifice, discipline, dirty words in America for some people today. You didn't wait on Washington to fix your life. You just went and fixed it. I'm so proud of you. Well done. Thank you.

Very, very, very well done. All right, $99,000 counted off in five years, making 48 to 51 plus three jobs. Count it down. Let's hear a debt-free scream. Three, two, one. I'm debt-free. Yeah. Woo-hoo.

Yeah, baby. Yeah. That is how it's done. I don't care how tough you think you are. A five-year grind. Woo-hoo-hoo-hoo. That is gangster, dude. That's calluses, man.

Man. That's calluses. This is not for the faint of heart. This is not for the wuss. You've got to be willing to step it up. That girl's a warrior, man. She looked in the mirror for five years and said, I'm worth it. I'm worth it.

You don't want her to draw down on you. She's a warrior, man. She'd get her done. Wow. Good stuff. And if not, she's got a trunk full of alcohol samples. She'll find a way. Megan will find a way.

Good for her. What a stud. This is the Ramsey Show. Dr. dr john deloney ramsey personality is my co-host today open phones at 888-825-5225 michael is in sacramento hey michael welcome to the dave ramsey show Hi, Dave. I've just got such a predicament. I'm 54 years old. I've got my primary residence. I've got so much credit debt. I've got about 10,000 credit card debt, but I probably have about $300,000 total in non-mortgage debt. And I just feel like I'm spinning my wheels and I don't know what to attack first. I just feel lost. What is the other $290,000? The other $290,000 is between student loans, lines of credit, loans that I had to take when I got divorced about 12 years ago.

I had a house that we were trying to sell, and I told the bank that if you let me sell this and not go to foreclosure, I will take on that loan as a personal debt because I pay my bills. So I did that, and I've been paying on that ever since. And then a variety of other loans. How much is that loan? That loan is $50,000 at 4%. Okay.

And how much is the student loan? The student loan is $67,000. And the cars are what? The cars total $ 90,000. Okay. And what's your household income? $170,000 salary, and then I just recently had an opportunity, which I started to make an extra $3,500 a month for overtime.

That's going to be consistent. Excellent. So $210,000. I have a pension. And what is your home worth? My home is worth $900,000, and I owe $575,000 on it. What do you do for a living? And I have two rental properties.

I'm a physician assistant. Okay. And you have two rental properties, and what are they worth? Let's see. I have one in Montana that's worth $310,000, and I owe $230,000 on it. And I have one in Idaho that's worth $325,000, and I owe $330,000 on it. And then I have a pension of $600,000 that I can have once I'm, so in 11 years, or I can take, that's lump sum, or I can take $3,000 a month annuity. Okay.

So how much do you want to be out of this mess? Really bad or just sort of bothering you? No, I've lived like this my entire life. And when I got divorced, I mean, the other part of it. Are you ready to get your life back? I've been ready for a long time. Because you need to really be ready because I'm getting ready to sell everything in your life. I'm ready.

Sell both rental properties in both cars this week so so all three properties no they're both rental properties and both cars yeah okay all right get you two five thousand dollar cars you make two hundred ten thousand dollars so now you have now you have your home, and you will have $210,000 left. So you're going to have about $150,000 left in debt, and you make $210,000, and you're going to pay that off in two years. The only problem is I just got these properties a few months ago, and I did it on a 1031 exchange. I don't care.

And I'm going to be taxed heavily. I don't care. It doesn't matter. All right. Your life sucks. You're drowning, man. Yeah. You have so much crap in your life that is not producing joy.

Well, if I can tell you one more thing, I've got an alimony of $2,000 a month that's never going to go away until I die. Okay. That's $24,000 out of $210,000. Yeah. That doesn't keep us from getting out of debt. Right. So $24,000 and $75,000 is $100,000 out of $210,000. You're going to live on $210,000, and you're going to be debt-free in two years, and you're going to sell everything except your personal residence.

Okay. Listen, I'll tell you what i'm reacting to i'm reacting to the tone of your voice when you called in you sounded so overwhelmed so despondent so stuck that it sounded to me like you were willing to do almost anything and that's where i am that's where i am i think you should do i think you should feel that way because you feel like there's 12 freaking years this stuff's been hanging around your neck. And you make all this money and you're a PA and you can't get traction. You are so freaking stuck. It's unbelievable. And you can't breathe.

And that's what I heard. Did I miss something? Nope. You nailed it. And every time you walk into that hospital to help other people, you've got 14 cinder blocks in your own backpack. Is that fair? Yeah, at least. Brother, you've got to set that pack down.

You've got a bunch of crap in your life, man. Put it down, man. Just $90,000 worth of cars? Yeah. Jesus. Who are you impressing, man? I know. Nobody.

I'm not asking that in a jerk way, but there's something in you that says, I need a million-plus dollar house and these... Well, I mean, he's in Sacramento. That's not a big house. Yeah, that's a 3-2. And two expensive cars and two homes. Something's telling you that you're not good enough, man. What is it?

Yeah. You know, this didn't happen all at once. This has been death by a thousand cuts, layer upon layer upon layer. This stuff is built up, and then it never goes away. So it's a cumulative effect. I'll solve it by adding something else. We've got a 12-years-ago thing. We've got a student loan that's still hanging around after all these years.

Then we go buy cars, and now we roll these houses into a 1031. So you're going to get hammered on taxes out the backside. So you're going to have, what, $100,000 in taxes? Probably, yeah. I'm going to have a lot. 15% of what? What do you think your gain is that you rolled into these? My gain will probably, because I put $80,000 down on one and $70,000 down on the other.

What you put down has nothing to do with the calculation of your gain. How much capital gains did you roll into this 1031? I was told my taxes will be, if I were to cash out, about $50,000. Okay, good. That's less than I thought then. Good. It's only $50,000. This is the price of cleaning up your life.

Yes. So, you know, basically you're going to get enough out of these properties to pay your taxes and be free. So that's a wash. We're going to sell the cars for close to a wash. And so now you have $210,000 left. I was wrong earlier. It's not $150,000 because of the capital gains bill. I said $160,000, $150,000, but it's going to be $210,000.

I didn't have a $50,000 capital gains bill in there 160 150 but it's going to be 210 i didn't have 50 000 capital gains bill in there but now i do so you're you're still you know so how fast do you pay off 210 making 210 three years at 70 grand okay and that means you have 200 and it means you have 110 000 to live on after you pay alimony and 70 grand towards debt for three years and you're 100 debt free how old are you 54 you want to be debt free when you're 57 this is how you do it okay i just want to make sure i understand so both cars sell both rental properties and then hit your plan hard nothing else complete focus like i'm so pissed off i am so sick and tired of being sick and tired that I have not only sold this stuff,

I'm going to sell two of the kids if they don't hide. I'm just going to have to get my wife to buy in. Hopefully it won't be too hard. Yeah. Well, I mean, does she want her life back? Ask her if she wants a husband that can sleep a full night of sleep. Can breathe. Yeah.

A husband that can walk around the neighborhood without his head spinning, without having to grab his phone every two seconds. Yeah. They can wake up with a smile on his face. We call it financial peace. That's what we call it. And you can do this, man. You can do it.

But it's just a matter of if you want to. If you get sick and tired of being sick and tired, that's when you change your life, man. If you can get through PA school and if every day you can walk into that traumatic situation and heal people, you can do this. This is easy. I know you can do it. Just are you ready to be willing to go? Because there's a completely different groove.

We're going to have to plow down the middle of your brain to get your brain to function differently because you've been running the great American mess. And if your wife can contribute to this too you can get done even faster yeah we yeah yeah so i mean only thing i did only thing i did to her sell her car that's all i did and her montana house i guess but oh well you're costing us the idaho house dave but oh wellesley yeah that's that old mean Dave Ramsey guy. Hey, man, you can do it. I believe in you.

My chest is tight for him, man. I felt it. I could feel it. It was in the air. This is The Ramsey advice in their life? Let them know about the Ramsey Call of the Day podcast. It's a quick hit of advice about life and money in under 10 minutes.

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