The Ramsey Show - App - I Haven’t Gotten a Raise in 10 Years (Hour 3)

Episode Date: April 7, 2023

Dave Ramsey & Jade Warshaw answer your questions and discuss: "I haven't gotten a raise in 10 years!" How do I invest the money for my mom's care?" "Should I go back to my old job to get overtime?" "What's the best way to use our stocks?" Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET 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 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 Walsh, our Ramsey personality, is my co-host today. It's a free call at 888-825-5225. Thank you for joining us, America. We're so glad you're here.

Rachel is with us. Rachel is in Detroit. Hi, Rachel. Welcome to The Ramsey Show. Hi, Dave. Thanks for having me today. Sure. What's up?

Okay, so I have a question. Me and my husband are completely debt-free except for a house. And it's actually a career question. I've been working at this medical office for probably almost a decade. And I love my boss. I love the job. I love everybody I work with. And I love the hours. However, I have never got a raise since I've my boss. I love the job. I love everybody I work with, and I love the hours.

However, I have never got a raise since I've been there, and there is no benefit as far as like 401K, medical, anything like that. Ten years without a raise? Yes. I've been there almost ten years without a raise, yes. Have you asked them about that? Well, this is the thing. One of my coworkers just left the office after being there for a long time.

And he called me up and he said that he was going to give me a raise if I stayed with him until retirement. And I said, oh, okay. So know, so I, when I went to work, I gave it about two weeks and I went into his office and I said, um, oh, I was just wondering what happened to that raise that, um, you said something to me about, and he said, oh, I'm not going to do that until I actually tell you I'm retiring. And I'm like, oh, okay. Like, I don't know why you would say it, right. If you're not going to give me the raise, I guess. And so I don't know what to do in this situation because a part of me, my husband's telling me that I should go look for another job. And then a part of me is like, well, maybe I should stay here.

But he is going to be retiring. I don't have a retirement date. I don't have anything. Another job just is going to be offering me a job. What do you make? An hour or a year. What do you make a year? I make about $30,000.

Okay. And what do you do? I'm a receptionist. It's something I don't have to work, but I want to work because I want to pay our house off faster. Okay. Where do you want to be doing in 10 years? Good question. I guess I want, I do like, I'm good at customer service, so I do like receptionist type of work. So you want to keep working for the next 10 years doing something? I do, yeah, I do.

I do want to work. The other place that offered you less money, why did they offer you less money than $30,000? The other place offered offered you less money, why did they offer you less money than $30,000? The other place offered me a dollar less, but they have benefits. But then I'd be working more hours. And I don't know what to do. Do you want to work more hours? No, I don't.

But I want to make. So it sounds like neither one of these are good jobs. I don't know what to do. And I don't have to work, but I want to work. Look for a different one. You kind of boxed yourself into a corner and told yourself it's either this or that and that there's no other options out there. But there are other options out there if you keep casting your net out there.

You might poke around and make $50,000 doing customer service somewhere. Might not be as a receptionist, but you might just. There's such a labor shortage right now. It's a great time to be looking for a position. And, you know, so I think I would slip into your doc's office first. That's who you're dealing with, the doc, right? Yes. And they're notoriously horrible at running businesses um so i in leadership and those kinds of things because what he what he just did like violated like 73 leadership rules okay so yeah i would just slip

in there and say you know i um i anticipated that you were going to go ahead and give me a raise based on the way you said that, and if you're not going to, I'm going to let you know that I'm going to be leaving soon. Okay. All right. He's such a nice man, and that's the other thing. No, he's not.

No, he's not. Nice men do what they say they're gonna do bingo yeah that's true that is true he's passive aggressive is what he is right and my husband has been telling me that i need to go and look for something different because yeah you know what i'll change my mind i wouldn't even i wouldn't even tell him i would just go look for a job. Yeah, you can find... You're not going to fix this guy. You need to leave.

You can find another job that you enjoy, that you love the people, that the person that you work for is a nice man or a good person. That exists in other scenarios besides the one. This is just the one you're most familiar with and the one that you're used to. So don't let that make you think, oh, I'll never be

able to find something like this. Again, you might find something better and you probably will. You'll probably find a better situation. Go ahead and lay out what you want. I want hours. I want this kind of money and I'd like to have benefits and then start looking for that. And I think you're going to find it in two weeks. Okay, and I want to say thank you to your plan, because honestly, right now I'm in a great situation that I can pick and choose what I'm going to do. We have no debt. We have a house to pay off, and that's why I want to work.

I want to work. I want to pay off the house faster if I work, and I want benefits. I want to have a 401K through an employer. Even though I have my own opened up already, I would still like to have want benefits. I want to have a 401k through an employer. Even though I have my own opened up already, I would still like to have those benefits. Well, it kind of has come down to you have served for 10 years without them giving you the items that give you dignity. For you, a 401k and the occasional tip of the hat,

even if it's a dime an hour, at least it's a raise. Right. Just someone saying you're doing a good job. Mm-hmm. Physically saying that, not just giving the words to it. Right. And so, yeah, it's, yeah um yeah i mean i could talk about how to ask for a raise and how to negotiate and all those kinds of things but i don't think i would

here i'm with your husband i think it's time to leave i think i'm gonna go look for something else and uh because i mean you've got this breakdown if i'm you i've got a breakdown of trust now in addition to the other things and so um and you're just so sweet and every there's just no there's no conflict or drama in the air or uh uh actively out there in front of you so you feel like it's all safe but there is conflict and drama under the surface here and it's it's just not bubbled up yeah and it and i don't think this is the case with her i think that she's probably done a great job at work but if for some reason she was doing a crap job at work and they didn't think she was worth giving a raise then that's still a leadership

problem they should have had a conversation they should have said so on either side of this pendulum which again i don't i think that you probably did an exceptional job at work. It's just not good. It's bad business. 10 years. 10 years. That's a long time. Not even 10 cents. Not even a nickel. Not even a nickel. Get out. Get out while you can. Yeah. Let's go find something else, hon. I think you'll be happier in the long haul. Yeah. You just need someone. Work should have dignity to it.

Yes. And you have to give dignity to it in the organization that you're in. It's not hard. You just have to do it. This is The Ramsey Show. When was the last time you were excited about a Monday? What if instead of waking up exhausted, you felt exhilarated? Can't wait to get to work because it's another day to fulfill your passion, your dream job.

In a world where bare minimum Monday has taken the place of quiet quitting, in a world we are have a group of morons who are now worshiping the art of mediocrity maybe you ought to plug into something where you can reach for excellence where you can actually get fired up and wired up about your life again and go be somebody instead of trying to manage average no let's don't do that let's don't do that. Let's don't do bare minimum Monday. That makes me sick just saying it. Get a little throw up in my throat right then. Bare minimum Monday? That's just awful. It's just gross. So this is why career expert and Ramsey personality Ken Coleman created the Get Clear Assessment to help you discover your top talents, passions, and a clear mission statement that'll help you find the work the world needs you to do. And after taking the quick assessment, you'll get a custom report with everything you need

to take that first step toward a career that you love, a meaningful career that you will plug into and leave it all on the field, baby. Hey, start your journey by taking the Get Clear assessment at ramsaysolutions.com slash get clear. Dale is with us in Nashville. Hi, Dale. Welcome to the Ramsey Show. Hey, Dave. Thanks for taking my call.

Listen, I have had to sell my mom's house in order to pay for her assisted living. So I've got the money just sitting in a checking account, and I need to do something with it. Now, I know you're not a big fan of CDs, but, you know, short term, I don't know if there's a better alternative. Can you help me? There's not much better. It's not going to make much difference, though.

How much money is it? $260,000. Okay. And how much is our care costing? $66,000. Okay. And how much is her care costing? Um, 66,000 a year. Okay. How old is she? 90. How's she doing? She's in a memory care unit. Um, you know, at 90 years old, she has the typical high blood pressure, heart disease, cholesterol. But other than that, she's doing quite well. I mean, she can carry on a conversation with you, but she just doesn't have very much memory.

Man, I'm sorry for what you're walking through. Thank you for being a good man and taking care of your mother. Well, I'm just trying to be a good steward of her money so i'm trying to figure out what's going to be best yeah so if you make one percent more on it you're going to make two thousand dollars more okay okay and um and so if you can get a cd that's making two percent you're gonna make five thousand dollars more so five thousand dollars and we have 260 000 in the bank does And so if you can get a CD that's making 2%, you're going to make $5,000 more. So $5,000 when you have $260,000 in the bank does not change the equation much. Does that make sense to you?

Yeah, yeah, yeah. And so, yes, go ahead and put it in a CD because that's better. It's $5,000 more than you would have had yeah yeah what's your bank quoting you on a cd um for 12 months 5.45 that's good yeah so that's five percent more than you would have had yeah i would do that yes definitely but and then you know and you know lock up all but $60,000 of it, right? So put $200,000 of it in that. Yeah. Well, I didn't know whether to do it in a mix of doing, like, part of it,

the money in a 12-month, part of it in a 9-month, part of it in a 6-month, in case heaven help me, if something should come up and I'm needing to liquidate earlier than 12 months. Again, I would have to six months and have that at maturity. If you have to liquidate earlier than 12 months, it means you just don't get all the interest. They don't take any of your principal. So it would just be you get less than five.

So it's not the end of the world. Yeah, my goal is just to keep it until maturity. I'm going to try to keep enough. I'd put at least 150 in for a year at five. For 150 for what? For a year at 5%, yeah. Oh, okay. At least.

Oh, okay. And that leaves you $90,000. $90,000 will cover any contingencies. And if you don't quite get the five because something happens and you end up liquidating sooner, then so what? It's not the end of the world. Okay. You're not going to lose any money.

Okay. I can't afford that. The point is you're not going uh you're not gonna make substantial money on this with this type of thing but it is it's better than than leaving it sitting there making one percent in a stupid savings account right so yeah if you can get five in this current market that's a good thing i'd step on that and um i personally probably put 200 in there but at least 150 uh because it's's 61 years worth of expenses. And then, again, if you liquidate early, you don't lose anything except a portion of the returns.

You lose none of the principal. So it's not that big a deal, really. We're going to take a run at it here. So for somebody listening who's going through something similar, at what point, Dave, would you invest that money beyond a CD? If mom was younger? Generally, investing means I'm going to mutual funds, and that means I need 97% of the five-year periods in history in the stock market have made money.

So if you're in good mutual funds you leave it alone five years 97 of the time you will make money all right and uh only about 64 67 of the three-year periods make money so um i put money in mutual funds that i'm going to leave alone a year but and i might lose some money after a year if I want to move it over into some real estate. But you can stomach that. I can mathematically afford that hit. It doesn't affect my life.

But he can't afford to lose $26,000 of this $260,000. He can't lose 10%. It would be a lot. And chasing 10%. So we don't want to take that risk here uh but if if uh if mom was uh in really really really good health uh had uh uh some early signs of alzheimer's and was in nursing care and she was 62 right now we've got a life expectancy that is much longer statistically speaking exactly um and we

might say okay some of this money we could park for five years and we could take a chance with it and make you know some good returns like instead of 5 10 11 12 something like that on a mutual fund so but yeah if you're not going to leave it alone five years we call it saving right you're gonna leave it alone five years it's investing right and so that's the the bell weather that we use around here and and so what we're doing with dale is we're helping him save some of his mom's money in the best possible savings account but that's not really investing right at that stage so good good questions. Debbie is in Raleigh, North Carolina. Hey, Debbie, welcome to the Ramsey Show. Hey, Dave and Jane, I'm so glad to talk to you. And I've got a big argument with my husband, so I'm going to go with your answer. So I hope it's a good one.

We are going from two incomes to one income. So for the first time, we're really going to try and set a budget. My husband thinks the way you figure out a budget is look at what we've spent over the last six to 12 months, and then that's how we figure out our budget going forward. Whereas I figure, no, we just have to look at what our monthly income is going to be. And then we have to give each category a dollar amount and go from there because it doesn't really matter what we spent before because we're not going to have that same income. Well, you understand? I do. I do.

You're kind of both right. I get what he's saying. If you've never done a budget before, you don't know what it is that you're spending. So, yeah, going back and looking at past bank statements and seeing what did we spend on groceries, how much are we really spending on gas, going back to see that is a great place to start. Let's say you spent $300 on gas and nothing has changed. And you do a new budget with your new income. You go, we need to spend $150 on gas.

You're not going to make it. That's not going going to work you're basically got to chop it in half so i mean but if you looked at your old budget and go well that's changed because you know we're not driving to work anymore one of us isn't working you know we're gas bill's going to go down yeah then you can make adjustments for that but he you're right jay both of you are right you should take your current income and spend it all on paper before the month begins. That's called a zero-based budget. And a good indicator of what you're going to need for that

is what you used to do, adjusting for whatever has changed since then. Or what you're willing to change since then. That kind of thing. What you're able to change and adjust since then. So they're both right. This is The Ramsey Show.

Thank you for joining us, America. Jade Warshaw, Ramsey personality, is my co-host. Open phones here at 888-825-5225. Elizabeth is with us in Minneapolis. Hey, Elizabeth, what's up? Hi. I just with us in Minneapolis. Hey, Elizabeth, what's up? Hi. I just have a quick question, maybe a life debate here, honestly. I'm 26 years old.

I am a 911 dispatcher, and I'm trying to pay off my debt. I have maybe a total of $600 in medical bills, and then I have a car payment. I got a new car due to some other issues back in 2021. I've been making payments, even extra payments when I can. I have roughly 19.3 left on my car. I recently switched 911 centers because I wanted to work with law enforcement and I finally had the opportunity to do so. But my old center that I still have

connections with and I could go back to is kind of tugging on me in a way because at my new center, I don't have room for overtime. There's not a lot of overtime because it's a smaller center compared to the center that I was at before. So you were doing 911 before? Correct. I've been a 911 dispatcher for five years now. So why did you change from one center to the other center? I felt burnt out. I felt that maybe EMS wasn't for me, and I'm now experiencing, unfortunately, as bad as I wanted

to do law enforcement. I wanted to do law enforcement dispatch since I started. You're doing 911 before. You're doing 911 now. How did you think that was going to solve burnout? I don't understand. A different center, a different style of calls. I'm not dealing with, I wasn't dealing with the traumatic medical calls compared to now just dealing with passing those said calls along. There's not as much overtime, so I wouldn't be tempted to work as much. At my old center, I would pull like 14 to 16 days in a row without a break. that's roughly like anywhere six to from six to eight hours in between shifts so what was the pay cut with you switching centers how has that affected your income the pay cut actually wasn't um i actually got a 40 cent increase um switching switching centers, but I have PARA, which is the Minnesota Law Enforcement Retirement, that they automatically take out because when you

first get hired, it's either you take it or you don't have it. Not your hourly rate. Your income is way down because you're not working nearly as many hours. Right. Correct. So what did you make a year before and what do you make a year now um before it was i have it written down to me i apologize anyone's looking here here's the thing if you're not going to work the extra hours at the call center because it's too much on you mentally or it's too much on your mental health fine but you gotta find a way to fill that gap because you've got this debt that you've got to pay off right so if whatever overtime hours that you were working whether it was 15 or

10 or whatever it was per week you've got to put that same effort into another job that's making you just as much money i don't want you to take a pay cut because you got to get out of this debt and i'm not saying it has to be at the 9-1-1 center okay what do you make and that was like my what do i make 3181 an hour okay and your income and what did you and so you made 3140 before correct okay and um but you're working half as many hours i'm working still in 80 hour week or paid period so 80 hours every two weeks but i don't have that extra like 20 to 30 hours that i would put on myself at my old center right so we got to find that elsewhere. Right. So I guess my question was or is I have an opportunity to go back to my old center and get that overtime and help pay off debt. Or I would pick up like I don't know what other type of job other than like maybe Instacart or something just because of how crazy dispatch center hours are. Yeah, look, that wouldn't be as much.

You've already told us that when you were doing 80 plus hours at the old center, it wasn't sustainable. And that's fine. Like, I understand. I mean, I've never done it, but when you tell me that it's stressful to your mind,

I believe you. And that's fine if you don't want to work more than 80 hours at that particular 911 call center at your old one. The point is, you've got to get those

hours somewhere, whether that's Instacart, that's driving Uber. I would love for you to be able to make the same amount per hour that you were making, but you got to get this debt paid off. What else have you done as a side hustle that you could do? I've never honestly had a side hustle before. once i became a dispatcher that kind of just basically it um i used to work in like food industry like my very first job before anything else was like the chick-fil-a um all right so yeah i'm gonna i'm gonna look around for something i can do whether it's dog sitting uber uh instacart, I don't care what it is, but I'm going to look for something I can do that you can make really good money at for a short

period of time that you can work around your normal 40-hour schedule, and I'm going to stay where you are. Okay. Because your need for extra hours is only $19,000 worth. Then you don't have a need for extra hours is only $19,000 worth. Then you don't have a need for extra hours. You make $50,000 a year. You can live on $50,000 a year in Minneapolis if you don't have a $19,000 car payment, right?

Right. Okay. And so what I want you to do just temporarily for like one year, gear up, work your butt off, and keep the job that you like. Because what you're saying is I was going to hold my nose and go back to the other place in order to get out of debt. Instead, I would just stay where you are, hold my nose, and work an extra gig of some kind.

Find a good hustle and grind side hustle and knock yourself out for a year and be debt-free. And then quit the side hustle and have a great life. Yeah. You're going to be free before you know it. I think in your mind you're trying to change your whole world. You don't need to change your whole world. You just need to get a side job, work it, and and pay off twenty thousand dollars of debt and you'll be free go back to the old job that was burning you out and you're working freaking 80 hours i'd sell a stupid car before

i did that but i think you can just pay off the car in a year and keep it by working a side hustle what i would do and then um then you've got your best world you got you set your best world up that's a good move. Justin's with us. Justin's in Atlanta. Hi, Justin. Welcome to the Ramsey Show. Hey, Dave. My wife and I have been listening to you for around five years,

so thanks for all the wisdom. Thank you. What's up? So our question basically is, what's the best way to use stock grants from our work to pay off our mortgage early? We bought a house about a year ago. We have about $300,000 left on the mortgage. We have nearly $16,000 worth of stock grants that vest quarterly.

So what would we tell you to do? You've been listening five years. I don't know the specific. I know you don't want me to keep it in that in that company so i guess the two options are so cash it out as it's vested and throw it at the mortgage okay so you wouldn't put it in a mutual fund or an index fund and let it grow a little bit nope you're already investing 15 you've been listening five years what's baby step six pay off the mortgage it's not invest extra in mutual funds no it would be to put it into a mutual fund until it got to be the amount for the write-off for the mortgage have you ever heard me say that in five years

no but i've never heard this specific question but you've heard people say why don't i put it into a mutual fund because they call every week and say that why don't I just put it into a mutual fund instead of paying off my mortgage early? Justin, that's what you want to do. That's what you wanted to do from the moment you called. No, I genuinely don't want to do either or. Oh, okay. Well, then let's keep... I'm good either or.

I just... Let's keep... I've heard Dave say, depending on the timeline that you have, a mutual fund... That's if you're saving up for something. In this case, go ahead and continue to invest your 15% into your mutual funds, into your retirement, and then we chuck anything extra to the mortgage. And in this case, you selling those vested stocks or getting out of those stocks is going to be something that you can chuck toward the mortgage. Don't put it in a mutual fund. It's a baby step six move. That's exactly what it is. That's your baby step six

flex. There you go, dude. This is The Ramsey Show. Our scripture of the day, Proverbs 1.5. Let the wise hear and increase in learning, and the one who understands obtain guidance. B.B. King said, the beautiful thing about learning is that nobody can take it away from you. That's good stuff. Jade Warshaw, Ramsey Personality, is my co-host today. Thank you for joining us, America. Andrew is next. He's in Charlotte, North Carolina. Hi, Andrew. Welcome to the Ramsey Show. Hey, how's it going? Better than we deserve. What's up? I am calling because me and my wife, we are both 20 years old, and we've been doing the Ramsey plan, and we paid off all our debt and everything,

and now we are thinking of kind of changing our jobs because now we really want to do something just to collect a paycheck we want to uh do something we enjoy more and something that's more impactful um and just trying to weigh the options on that because it is going to be a pay cut uh with that so very cool what are you thinking about getting into um i want to go into uh youth ministry ministry at my local church. And she wants to, she currently is a preschool teacher, kind of like a private kind of thing, and wants to go into the public school setting just as an assistant. Okay. What's it going to take for you guys to make those transitions?

I guess just applying and hoping we get it. So what's your household income now, and what would it be if you did this? Right now it's about $100,000, and it'd be moving to between $60,000 and $65,000. Okay, all right. Well, what I would want to do is a path that takes me somewhere rather than just down and so um neither one of these things sound like what you will be doing when you're 45 the number of 45 yearold youth pastors is fairly small. Okay? So you likely would move, I mean, a normal path would be to move towards associate pastor, maybe senior pastor later. That's a fairly normal path.

I mean, I've got a friend who's 67. He's a senior pastor of a major megachurch in a metropolitan area, started as a youth pastor decades and decades ago okay so i want a path a career path that um increases my effectiveness increases my joy increases the scale of the people i'm helping And if these moves take me on that path, good, if they're a step in that direction. But just I'm going to dumb down my life to have more joy when I'm 20, no. Right. Okay.

I think both of these things are congruent with what I'm talking about, though. In other words, I think your wife could move into this uh public setting with the idea of become you know getting her degree becoming getting her certification becoming a teacher maybe even someday uh doing some uh tutoring maybe even opening up her own tutoring operation and at 50 years old owns uh 17 of those across 14 states i don't know i'm making that up, okay? But it can start with being the assistant teacher, right? Right.

And it's all teaching, and you can start with being the youth pastor of a small congregation that doesn't pay squat and be serving the Lord, but that doesn't need to be your end game. Agreed? Agreed, yeah. So let's lay out a better end game and then move in these directions, because otherwise you're running from something instead of to something.

Okay. So jump online with Ken Coleman, and let me do this. I'm going to give you two of the assessments, the career assessments that Ken developed and our research team developed. And I want you to take those, and they're going to give you some indications on what you can do, where you can go. And then I want you to lay out and say, all right, how does this end? There's an old book that's fabulous called The Seven Habits of Highly Effective People

by Dr. Stephen Covey. And one of the seven habits of highly effective people, effective in ministry, effective in the classroom, effective in business, effective people, is they begin with the end in mind. And the end being, okay, like when you're my age, dude, I'm 63. What are you going to be doing? I'm glad I did this with my life. I was a good steward of my life for the Lord. All right. That make sense?

Yes, sir. Yeah. Now, however, the only thing, we did take the career assessment. We did that this past week. Oh, wow. Very good. You're ahead of me. Okay.

Cool. Yeah, yeah. So did it solidify what Dave is telling you? Yes, yes. And, I mean, it seems more like that's the direction we should be going, but I think we just need to, like you're saying, just have more um a more like long game plan yeah that's right so i mean when when when we started this business

uh the year we started it i made 120 000 the year before doing real estate and this is 1994 okay and we opened we opened shop in 1994 moved out of my living room into a little tiny office, and that year I made $60,000. So pretty much what you're talking about. I went from $100,000 and some change down to $60,000, and Sharon's like, where's the financial peace? But we were going somewhere with that. That was not, oh, we're going to be satisfied,

and that's what God's calling us to do, and we're going to have the joy of helping people, and we're going to be satisfied, and that's what God's calling us to do, and we're going to have the joy of helping people, and we're going to make half the money. No, we knew that we could help more people and more people, and over the years we've found lots of ways to help people and lots of ways to expand what we do here and the effectiveness of it, and it's been not only very satisfying but very lucrative. Yeah, it's good. You have satisfying but very lucrative yeah it's good you have you have to have a long-term vision tiffany is in memphis tiffany we're short on

time go straight to your question yes so we are in memphis as you said and we're looking to make a move to chattanooga um next year possibly around may and we're wanting to have a really down payment um so we would use the profits from our home but any extra money should we put that on top of our mortgage payments like our savings or put it in like a high yield savings account separately doesn't matter okay i just wasn't sure if there was like a tax, like you're paying less tax. You're no tax on your sale of your home. You're going to have no tax on and up to half a million, up to a half a million dollars married filing jointly. And the that's profit that has nothing to do with the mortgage.

Okay. And I meant interest rate. I just wasn't sure if we put more towards it. I guess that wouldn't matter because you're paying the interest rate anyways. Yeah. Yeah. You're going to make about the same interest you're gonna you're gonna pay taxes on the interest on the high yield but it's not enough money the big difference here is that you say the money that you have one year from now will not be due to this decision it will be due to how much money you put into it you're not gonna make any money on it either way both of them are two or three four percent okay okay okay four

percent one hundred thousand is four grand so if you have a hundred thousand in there it's because you put a hundred thousand in there not because of the four grand okay perfect see what i'm doing okay yep if you're doing if you're doing it for 10 years the interest rate matters a lot sure you're doing it for one year it doesn't matter much mean, it's a glorified shoebox to put money into. I like it. I like the plan. So just think it through. I like paying the extra on the mortgage because it doesn't accidentally end up in a bass boat.

That's what I would do. That's what we did. That's what you did, exactly. When we got ready to move. That was your go plan. We continued. We were making extra payments on the mortgage before, and we knew we were moving, and we thought, let's just keep doing that because we know it's not going to get spent on anything else.

Yep. That way, it gets stuck. It's a forced savings plan. That's right. You can't get your money out except by selling or refinancing, so you don't accidentally go buy a new car. Yep. You know, oops!

You know, people do this sometimes. I've heard that. Exactly. Randomly happens. They were forced into it. They were forced into it they were forced into it and now they're in repossession yeah ouch scary out there it's really really scary it's a good question tiffany and it's you know here's the beauty beautiful thing about what you're asking

you're one year away and you're actually thinking about it this is what adults do well done tiffany adults devise a plan and follow it. Children do what feels good and are impulsive and YOLO their butts off. So it's more fun to be an adult, by the way. You have more choices. Children don't have choices. They get told what to do by the adults. That puts us out of the Ramsey Show and the books. We'll be back with you before you know it.

In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. Hey, what's up, guys? It's Jade. Look, if you like what you heard in this episode and want to know more about getting started on the Ramsey Baby Steps, go to RamseySolutions.com and click the Get Started button. We'll help you figure out the best next step for you based on your specific situation. That's RamseySolutions.com and click Get Started.