The Ramsey Show - App - I Owe More on My Car Than It’s Worth (Hour 1)

Episode Date: August 18, 2023

🎵 Live from the headquarters of Ramsey Solutions, broadcasting from the Pods Moving and Storage Studio, this is The Ramsey Show. It's where we help you build wealth, do work you love, and create great relationships. 888-825-5225 is the phone number. 888-825-5225 is the phone number 888-825-5225 I'm Ken Coleman joined by my colleague

the fabulous Rachel Cruz ladies and gentlemen Thank you Ken Feels right The adjective I'll take I feel like mailing it in and just going I'm Ken Coleman with Rachel Cruz That's what some do.

I'm supposedly the work guy, right? Do great work. I feel like you need a great introduction. Yep, in my work. It's not flattery. It's just me trying to bring it on this Friday. Thank you, Ken. Finishing well today.

We need to finish well. The fabulous, incomparable. We got three hours ahead of us. Mother of three. Wife to Winston, she is, Rachel Cruz. Multiple best-selling author. She's here to take your money questions. I'll take your questions about work, getting that income up, and everything in between.

So let's get right to it. Abby joins us to kick things off in Salt Lake City, Utah. Abby, how can we help? Hi, guys. Thanks for having me on. Super grateful. Well, we're grateful to talk to you. What's happening?

My husband and I just finished Financial Peace University through our church. Very blessed for that. We're 27 and 28. Wow. Good for you guys. We just got into our careers, and we're making a lot more money than we're used to, and we have great guidance from y'all. Great. And we've always tied that 10%, and since we got our careers and started budgeting,

we put another 10% into charity. So we're giving 20%. But my question is we're technically on baby step to $16,000 away from finishing our student loan debt and being completely debt free. Nice. We're about two to three months out. And my question is, are we jumping the gun by over giving? No, I wouldn't say so, Abby. I think, which you have to realize and people

listening right now, you know, especially when you're in that baby steps, you know, one through three, we still encourage giving. We talk about giving, you know, 10%. And the way we've kind of viewed it is you're practicing that giving muscle, which I think is very important to just the character of who you are through this process. So you are making it a habit of living with an open hand, which is really important. So you're doing that. And then as much focus and intensity we can put towards paying off debt, getting an emergency fund built. And once our house is in order, then you're able to give radically above all of that. And especially when you get to maybe step seven, you know, you're just investing at that point and

no debt at all, including the house payment is done. Then you're really, really able to give. So what I would say to you is, you you is understanding that, yeah, giving is very crucial. But when you give any amount of money, right, that is, quote unquote, taking away from progress in baby steps two and three. So we want to have that balance, if you will, because we want you to give a little until you can give a lot. And so, but what I would say for you guys is also, I'm not legalistic about the subject at all, because if you feel compelled and there's a conviction, you know, on you guys that are like, no, no, no, this is what we're supposed to be doing with our money, then do it. I'm not going to sit here on the other side of a radio show,

you know, or a radio call and tell you not to do that. But what we teach, just so you hear that, Abby, is just that full philosophy of giving something until you're able to give a whole lot more because you're out of debt and your house is taken care of with an emergency fund. So the fact that you guys are, yeah, two to three months away. Do you know what I mean?

Like, yeah, you guys are fine. You're fine. I don't want to be legalistic about it, but I also don't want people to hear on the other side. Oh my gosh, I got to give away half my income in order to be a, you know, a good person or whatever the thing may be. Right. So that giving element is really important. Um, and it can be practiced so much greater in magnitude when you have these other things taken care of. Gotcha. How's that feel?

Make sense? Yes. What are you guys doing, by the way? You said you got your careers lined up. What are you guys doing? Yeah, so we were restaurant servers, got through school with some student debt and everything, worked that whole time. And now he's an engineer and I'm in human resources. Nice.

Good for you guys. What's your collective uh take home excuse me just a gross salary five yeah 125 gross wow that's great and you said uh 16 000 left in baby step two is that right what's your uh nice so how soon you think you're going to pay that off? It looks about two months. Wow. Getting after it. I know. Abby, that's so great. Yeah.

And I think you got, I mean, your heart is in the exact right place. I mean, you're doing great. Yeah. I mean, I wouldn't steer you one way or the other, and I hate to be ambiguous about it, but yeah, I think the principle that you stand on, right, is one of an open hand. Yeah, generosity is very good. And that's so important. And so for most people, they're not doing that at all, and we encourage that.

But then also, you know, Scripture is very clear that you want to take care of your own household first, or you're worse than an unbeliever, too. So you don't want to get behind on anything. And again, that progress you can make when you're out of debt and you have an emergency fund in place, the margin you have, I think, from a mental standpoint and a financial standpoint is just so much greater to give even more. Yeah. And you guys got a plan. You're two months away from being completely debt-free, and then you're going to fill up maybe step three in that emergency fund pretty quickly is my guess. And the whole time, the spirit of giving, it's just you are the person you are you know uh

when you're in debt when you're out of debt and and money reveals a lot of characters so i gotta ask you this as a young couple how's the budgeting process for you guys in this in this are you guys you guys got a lot of uh chemistry how's that gone for you as a young married couple getting out of debt and using the budget? It's been life-changing. I'm the financial mind. He's the free spirit. We've really come to grow through it. And it came at the perfect time in our lives in our late 20s here. That's great.

Are you using every dollar? We do. Uh-huh. I was wondering because you just came through fbu so that's really really cool i got to ask you this because i want to talk about you've got a free webinar coming up that i think is amazing i don't want you to talk about it but but i just want real quickly abby what has it done for you guys how has every dollar helped you in this process yes it has made it so clear on the categories and it's taken a lot of the guesswork out so we haven't had to you know do all that extra mind wrenching on what where things should be

it makes it automated so we've really enjoyed that's awesome being able to sit down with that well cool well thanks for sharing that rachel i want to talk about this this is a great opportunity uh to find out the details on rachel's webinar every dollar dot com slash budgeting but tell folks what you're going to be doing and why they need to be attending this yes we just had one earlier this week um and it went really well i think it was close to 2 000 people showed up yeah oh that's great and yeah and i think it's one of these um really important things that i i feel real that's really important to your financial journey is understanding where your money's going and that it's a tool to be used. How do you use it most

efficiently? And when you have a plan for it, then you're able to stretch those dollars. So it's really important. So you can go to everydollar.com slash budgeting. Jade has one coming up next and then I'm after her. And then George has, I think one or two in September. All the details. By the way, these are free webinars, right? Is that correct? Yes, absolutely. Okay, so it's free, free, free. Listen, folks, and you're going to have Rachel, Jade Warshaw walking you through these. All the details, go to everydollar.com slash budgeting, everydollar.com slash budgeting, and get up into this webinar. Game changer. All right, don't move. We got to take a quick break. Rachel's back. I'm back. This is The Ramsey Show.

Welcome back, America. You have joined the conversation here on The Ramsey Show. It's a conversation about your life, your money, your work, and your relationships. Let's get right back to the phones. Oh, I am Ken Coleman. She is Rachel Cruz. We are here for you this hour. 888-825-5225. All right, to the phones we go. Jimmy is with us now in Chicago.

Jimmy, how can we help? Hey, how are you? Good. Super excited to be on the show. Great. Thank you so much for having me. I have a really loaded question. Oh, I like loaded questions.

It's very exciting. Ken is ready. I have a lot to explain here. So my wife and I listen to the Entree Leadership Podcast every day on our way to the gym. And we took the Financial Peace University this past spring as a couple. We are debt-free, paid off all of our student loans and everything from a previous sale of our house last year. This year, we moved in, actually bought a 15-year loan, new home, 10% down, less than 15% of our net. We also have a duplex, which was my wife's primary residency before we were married.

It's fully rented. It will be paid off in about five years. We also have a three-month emergency fund. We started tithing recently. It all fully rented. It will be paid off in about five years. We also have a three-month emergency fund. We started tithing recently. It all feels really, really good. This year, our gross income is pacing for about $385K total as a couple. Last year, we took in about $400K. My wife's a professional sales leader. I'm a pre-sales engineer for an IT solutions company. The reason why I'm calling is because I'm at a crossroad. I have a passion for technology.

I'm really good at what I do, and I have a side hustle for roughly on and off for about 16 years. Last year, I put a lot more effort into the business, and I made a gross income last year of $60K. This year, I'm pacing to make about $100K to $120K. And I have about 23 customers that I manage websites for and do their IT work. I recently brought in two deals this year that will gross $42,000. And I'm deciding to use that money to pay off $24,000 in business. That majority of it is my truck. That's in the business name.

And then just to kind of get into some of the details before I get to my question, my technology company also started a video blog brand focusing pool and billiards. And I feel like I'm so stretched thin because I get calls and requests constantly from my side hustle customers to my full-time role. I can't give 100% of my full-time job plus my side hustle. It'll kill my momentum. How much are you making right now in your day job? My day job, it's roughly between, because I'm part commission, part salary, so it's roughly between $200 to $240.

And you guys have, the only debt you have is this business truck? Yes. And the rental? And the rental, yes. How much do you owe on the rental? The rental is about 140K. What's it worth? And it's worth about three, roughly about 300, 380. Do you guys like it? Do you like the rental property or is it a headache? We do like it. I love renovating properties. I have had about three homes that are renovated in the past and I love doing it. Right now with our renters, we're bringing in about $3,800, which we're doubling up on the mortgage to get

it paid off in about five years. Did you already renovate it? Yes, we did. Yeah. I think I know what your question is. So go ahead and hit me with it i think i i think i know what the question is what is the question yeah so i mean my job is stable i have an upper trajectory for the company you know i can move into a director role and whatnot and make even more money over the years my wife and i recently got married we're planning on starting a family and a bit anxious to taking the plunge and taking my company full time um you know know, I do have a good friend who owns a $5 million a year IT company. He'll be retiring soon. And I'm wondering, do I negotiate an owner financing buyout during that time?

You know, if you were in my shoes, what would you do? All right, slow down. First thing is slow down. Like, you slow down. I mean, you've got a lot going on right now because whatever this billiards blog thing, that's kind of like an offshoot of your side hustle. Did I understand that correctly? It is, yeah.

We're actually in the process of building an app that's going to help the billiard community out, which should bring in some ad revenue. Right, but you're maxed out right now. You're already maxed out and stressed out. I'm stressed out listening to you describe everything to me. And by the way, I don't say that critically. I go, man, you're a high-volume dude. I'm stressed out listening to you describe everything to me. And by the way, I don't say that critically. I go, man, you're a high volume dude. I love that. Okay. But here's the thing. Now you're talking about buying somebody else's tech company. And so you asked

me, what would you do, Ken? So I'm going to answer it that way. I would not be entertaining any kind of move to buy someone else's tech company when you've built your own tech company from the ground and you're projecting this year to do half of what you're making in your day job and you're talking about this billiards thing and i wouldn't wait i wouldn't buy anybody else's company and i sure as heck wouldn't finance it so i would not even entertain it it would if somebody brought to me i went yeah i'd rather for me, and I'm certainly not going to buy something from somebody else. I think you're already at a place where financially, I'd say you may be six months away at max to moving full-time into your current gig. It's not like you're taking a huge pay cut. You're already a place now where you've got to choose, and it's going to start affecting you physically, mentally. It could

affect your day job. Your wife's making good money. I think you're pretty darn close to making the move. Yeah, Jimmy, if you went full time, if you like had a dream world where you weren't doing your day job, how many more, like have you projected it out that you could take on X amount of clients that are realistic that you could actually get what that income comes. Like, have you run those numbers? Cause I bet the way you're, the way you function and the way you think in my head, you're going to get back up to 200. I would think. Yeah, I agree. There's a, um, a small town that I have about four or five customers literally in that town. And if I expand out to much larger companies out there, I can easily double that. And this is all with the assumption, Jimmy, that you enjoy the side hustle more than your day job, correct?

Oh, I love it. I love solution selling. Yeah, that's what I'm good at. All right, so, Jimmy, here's what I would do. I'm not telling you to do this, so I want you to hear me stipulate. This is what I would do I'm not telling you to do this so I want you to hear me stipulate this is what I would do since you love renovating houses and you've already renovated this duplex I go ahead and take the cash I'd get rid of it a duplex for me is not a long-term hold I know you're getting good rent on it I know you're five years away from paying out but this is what I would do

so at this time of transition in my life where I want to go all in and work for me, I'd sell the duplex. I'd pay off the truck, the business loan on the truck. You don't need that. So I wouldn't go full-time until you paid off the truck because I don't want you moving into this side hustle, which becomes your full-time gig with any debt. So that's what I would do. I'd cash out and I'd get stable on my uh my new dream job which is working for me and then over time maybe you buy something cash and keep renovating and flipping that's what i would do i don't think you have to do that yeah i would clean things up right now because i just feel this i'll tell you what i would do jimmy here's what i got a baby maybe a little different okay i like this yeah i like options yes Yes, I know. Here's mine.

One issue is that the duplex is my wife's, right? And she had this before we... No, no, it's not hers. It's yours. It's ours. Ours, yeah. Yeah. Okay, well, so Jimmy, this is what I would do.

You're going to have it paid off in five years. And it's not a headache of a property for you guys, right? No, it isn't so for me if i were you i would stay in your current job making what you're making is you're making insane money doing both i would stay in it for you know i i mean maybe next spring start to transition out but i would just make as much money as possible right now because you're really good at that pay off that truck start paying down the mortgage like you're saying and then when you jump from your full-time job to your side hustle which i think can become really big i think you guys could pay off that duplex in three years keep it

around let it appreciate uh because i think you guys have the margin to be able to do that but i do know there is something to be said of oh my my gosh, you could get out of it, like what Ken is saying. Pay off everything. You have a lot of options then, maybe even to jump from the full-time job to the side hustle even faster, right? By just having that extra pad of cash in the bank. And then if you guys want to go get into real estate, you can.

So yeah, I think you're fine either way. I like that. I don't hate the duplex, by the way. Rachel like that. I don't hate the duplex, by the way. Rachel, Jimmy, I don't hate the duplex. I didn't say you were a hater of the duplex. I'm having fun with it. But my point is I wouldn't hold on to a duplex. I'd take the profit off the duplex.

Yeah, totally. Give me some cushion and then get into a house and some other real estate because you love flipping. That's what I heard, Jimmy. You like at least the restoration piece, so it might have sentimental value. I like Rachel's idea as well. I think you've got great options, but I'll tell you this. Don't go full-time for yourself until you pay that truck loan off.

Yes, that's good. And then I'd start to make the move pretty quick. I think if you hold on for three, four, five, six more months, dude, you might burn out. You know? You need a nap. That's what you need. You're doing a lot of work. I'm proud of you. Thanks for the call. She's Rachel Cruz. I'm Ken Coleman. This

is The Ramsey Show. Welcome back to The Ramsey Show. I'm Ken Coleman. I'm joined by my colleague, the fabulous, fantastic Rachel Cruz. We're here for you this hour, 888-825-5225. That's 888-825-5225. Today's question of the day is sponsored by our good friends over at Neighborly. They're your hub for home services.

In other words, they keep Ken and Stacey Coleman married because I can't do anything around the house. Very different than Winston Cruz. The love of your life. He's handy. I'm not. He is. I told him he needs to start the modern renaissance man site because I'm like. I got an idea for this.

There's a lot of things. He's going to hate me for what I'm about to say. Winston, I apologize. I think you need to start making some cameos on your Instagram page with some quick fixes that all those ladies that follow you, and they show it to the Ken Coleman's of the world and go, hey, you can do this. Look at this. Rachel's husband said you can do this in two minutes. Yeah.

He'd be a sensation. Who knew the difference between distilled water and regular water and batteries, like all this stuff? I don't know any of that. See, I already learned something. Me neither. So maybe we should. Okay, keep going.

But neighborly is here for everyone. But for those, you poor ladies out there who are married to guys like me, neighborly's here for you. Whether it's a simple repair or a whole list of home improvements, Mr. Handyman's experienced professionals are here to make your home work for you and make your marriage much more. That's not in the talking points. That's just my point of view. Visit neighborly.com to find expert home service providers, including a locally operated Mr. Handyman near you. So today's question comes from Mary in Florida. My boyfriend and I

have been dating for eight years and I just introduced him to you and your seven baby steps. He is on baby step one, and I'm continuing to invest my 15% and working on paying off my mortgage. We are 53 years old, live in separate homes, and I'm very nervous about moving in and or getting married to him because we think about money so differently.

I always think, what if? And he always has the mindset and approach that things will just work out I would appreciate any advice suggestions or your perspective you might any perspective you might have all right I before you get in the money I I gotta jump in here dating for eight years and you're 53 come on it's time to commit paint or get off the ladder is that the old saying poop get off the pot that's one uh put a ring on it uh why buy the cow when you get the milk for free i mean i could keep going i mean this is a situation here eight years 53 they live in separate houses yeah we gotta we gotta wrap this thing up soon, for sure.

As you take a sip. What do you think here as a woman? Wouldn't you want the guy to go, dude, get your financial life in order. Commit to me, man. What are you thinking? Well, I would give him a little grace. I mean, just, well, not in the relationship, but the money aspect. Because here's the deal. He may not know how to handle his money well right and sure i guess at a certain age you would expect people

to be like okay hey i'm gonna be proactive and look into this but some people aren't and some of you listening are in your 50s and you're just discovering us for the first time right so i would give him a little grace now if he is very you know, if there's a lot of conflict around it, if he's like a no-go on any of this, if he's going to be racking up debt and you're trying to stay out of debt, like if there are values in place that are conflicting, then yes, you need to know if you move forward in a marriage, that is a major issue. That is a major issue. But for him, he may just be like, oh, I don't know. And then, you know, here's it. It's like, okay, cool. I can kind of get on board that's great like he may not think this guy's a goal

he may not be as enthusiastic about it as but i think that's okay too because there's a lot of couples out there yeah that do our plan where one is like so on board and so hardcore and all of it and the other one's like yeah i'm not mad at the advice and i'll do some of it but i'm not going to be like that's a good point you know all in it 24 7 like some are so I think there's a balance here he feels like the free spirit you feel like the nerd but the biggest thing is just your values around money are you guys on the same page around that and working together as a team like all of that needs to be conversations in my opinion with other conversations about other things in life too I think Mary and the boyfriend ought to come down to see you and Dr. John Deloney for the old money and marriage event,

October 19th to 21st. Do you have to be married to come to that? I mean, I don't think we would kick you out if you weren't. It's not like you're going to check IDs at the door. No, we're not. Bring your marriage certificate or you don't get entry. We're not doing that. Deloney said yesterday that it'd be good for premarital stuff too.

Oh, perfect. There you go. I'm just looking're not doing that. We said yesterday that it'd be good for premarital stuff, too. Oh, perfect. There you go. Yeah, so there it is. I'm just looking out for the people. But yes, it... Because that's about getting on the same page. Oh, yeah. Yeah, yeah.

Money and marriage, that's why we call it that. Pretty good. October 19th to 21. All the details, by the way. RamseySolutions.com slash events and money and marriage. So that's coming up in October. That'll be fun. I won't be there.

I'll be watching college football that Saturday. I'm not on the docket. Enjoy. Enjoy. Oh, yeah. I'm not griping. I might send you some pictures with my elbow deep and some chips and salsa. Salsa going over there.

You and John helping them couples. You guys up on the hill. Doing good. My team's winning. Go Vols. Yeah, I don't know. I don't know. Is that what you say?

Roll Tide. You don't say Roll Tide. I don't say Roll T't know is that what you say Tennessee you don't say no I don't say real time I was thinking of all the SEC like you better be glad Dave ain't watching today you just said roll time now he'd have a heart attack I know why did I say that I don't know what is in me we better move on the rebel let's go to Ocala Florida where Edgar is waiting Edgar how can we help yes thank you for taking my call. Sure. What's up? My wife and I are on baby step two and the only thing we got left is a stupid car loan and we finally

decided it's time to get rid of it. Yes. How much do you guys owe on it? $40. You owe $40. Where's my Tums? How much can you sell it for? According to KBB, somewhere along $30 or $33.

Okay. We'll go $33 just to be optimistic. How much do you guys make a year, Edgar? Right now, I'm making around $55 to $60 in between two jobs, but we're getting pay cuts right now, so we don't know what's going to happen. Oh, no. What's causing the pay cut? New system implemented by our corporation, unfortunately.

New system implemented? Like AI stuff? That's giving you a pay cut? No. So basically, I'm a mail carrier, and I do mail counts every so often with the new system. We had a pay cut back in March and April, and now there's another count coming in two weeks, so we don't know what's going to happen. Oh, man. I'm sorry. Okay, so the 60, is that just you,

or is that your wife included? Does she work? No, it would be just me. Does she work at all? No, she's a stay-at-home mom. Okay, perfect. Yeah, way too much car, so I am with you on selling it. So you're going to have to go, I would go down to your local credit union, and you're going to have to get a loan for the difference. So you're going to have to go, I would go down to your local credit union, and you're going to have to get a loan for the difference. So you'll have to take out

that $7,000 loan. You could even up it to 10 grand, 11 grand, 12 grand to have some margin there to buy a car because you're going to have to replace this car that you're going to sell. And then that will be the debt that you attack is that new loan. So a $12,000 loan is much better than a $40,000 loan. So I think that you guys are making the right call by selling this for sure. So I would just take a loan out for the difference with a little bit more on top of it to get a beater. Get a car that's not great, that you hate, but you're going to drive it for six months while you guys work to pay this off. Pay off the $11,000 or whatever you end up taking out. And then, yeah, you'll upgrade over time car-wise. But again, this is not a great car.

And that's your only debt. Is that right? That would be my only debt because we can pay for a little bit of freedom. Yeah, that's great. Yep, I would do that. Do you have another car? I'm assuming your wife has a car? That would be my wife's car the car that i have personally for work it paid off for oh okay so it's your wife's car i see yes do you guys have kids uh follow-up question because the loan is with my local credit unit because i am a member and i already talked to them about it and they said they cannot give me a personal loan to cover that difference okay then i would shop around then. I would go, yeah, find someone else.

Yeah, I would go ask around. And maybe even lower that amount. And maybe you guys are a one-car family for a season, too. A lot of people do that. It's not convenient, but even taking it down to a one-car family if you have to. Absolutely. Yeah, great job, you guys, though. Thank you so much, guys. Yeah, absolutely.

Thanks for calling. And that's the stuff that, you know, especially when you guys though. Yeah, absolutely. Thanks for calling. And that's the stuff that, you know, especially when you look at those numbers, $40,000 loan to a $60,000, I mean, even possibly getting a pay cut. So you're owing on a car as much as you're making. So that's the time

100% you're going to sell. Sometimes we tell you if you can pay it off within 18 months and it's less than 50% of what you make, maybe you can keep the car and put it in your debt snowball. But a situation like this, it's an automatic sell. Got to get after it, Edgar. Get after it.

Appreciate the call. You guys are going to get there. Don't give up. The best is still coming, I promise. All right. Good stuff there. Thanks again for the call. She's Rachel Cruz.

I'm Ken Coma. Don't move. More of your calls coming up. This is The Ramsey Show. This is The Ramsey Show, where we help you win in your life, specifically your money, your work, and your relationships. 888-825-5225 is the number to jump in. I'm Ken Coleman.

I'm joined by my colleague, Rachel Cruz, and we're here for you this hour. Hey, we've got a lot of new folks coming in all the time, whether it be podcast, YouTube, radio, however and wherever you listen to us. And we've got some lingo. We've got, you know, the seven baby steps, and there's a lot of details with that. We know there's a lot of new language, if you will, new behaviors that you are listening to. And so we've got an awesome way for you to get started in this journey if you're now weighing in and going, okay, I want to learn more about this. And you do this by going to RamseySolutions.com and click on Get Started right there on the website. RamseySolutions.com, click on Get Started. and get started. And very quickly, with a few questions, we'll get you caught up to where you

are in those baby steps and what resources that you need as you are listening in to the conversation. And of course, we welcome you to call anytime, 888-825-5225. All right, Justin is up next in Madison, Wisconsin. Justin, how can we help? Yeah, thanks for taking my call. I have a very flattering job offer to change companies, and I guess we have some cold feet on the decision and want to make sure we're not making a mistake based on some impressive salary figures. Well, I can tell you right now, the way you set that up, you've already got a level head. So before you even get into the details, when you say you've got cold feet, what do you have cold feet over? What's making you question this and give us a call

today? Well, so, I mean, I just work for a good company today. It's very stable. So I'd be giving up some of that stability, and then we'd also be moving away from some family for this. So, and then, you know, and then the financial piece is kind of the piece we look at too. So, yeah, it's some impressive salary figures, but it's a higher cost of living area. We'd be taking on additional mortgage or possibly considerably more mortgage to move there and just want to make sure, you know, financially, this is a smart decision. I also have a defined pension with my company today, which is a very nice perk, but it's also some golden handcuffs that, you know, sometimes you don't want to leave and limit your options sometimes. All right. So let me remove, so let's do a little fun exercise. Okay. Let's remove

moving away from family. Let's remove a higher cost of living, including a bigger mortgage. And let's just compare the new offer, the flattering offer. And let's also take away the bigger pay bump. All right? So let's take the job as the job. The new offer, just as the job, let's remove all that other stuff. If that were the case, would this be a no-brainer would you still be mulling it around what's the answer now no i'd do it i mean it's a better job

tell me why or tell me why my i've worked in that space before and it's kind of where my passions are as far as what you know excited to get up in the morning except you know you work all day long and before you know it it's five o'clock and it's time to get off versus just grinding it out and watching the clock, you know? Now, you also mentioned in the current job, you mentioned the word stability. Is there anything about this new company with the new job that doesn't feel stable? So I'm familiar with the firm. I've worked with them in the past. They're a partner with my current company. So we had a prior relationship. So I think from a hiring

perspective, they might be a smaller company. They might be a little bit more flippant about terminating people or making changes. But I'd also say this company has pretty good stability too. That's one of the things I respect about them. You look at their org structure and they have a lot of 20, 30 year employees there that are very loyal to that company. Okay, good. So the reason I asked you to walk through that is because what you've done here is you've now hopefully identified, you heard yourself say that, that it's just change. And the very notion of change sometimes feels like instability. So let's talk about where you would move to.

Let's talk about, I want Rachel to dive into some of these numbers so you can feel good about this. Where would you be moving to and what type of house? What do you own your current house? Let's say we made the move. Walk us through the financials. Sure. uh boise idaho is the destination um oh boise is great yeah so currently we owe um about 150 000 left on our mortgage today what's the house what could you sell it for uh 750 oh wow yahtzeeall. I like where this is headed, Justin. Okay, so then. So for a similar caliber house there, you'd probably be talking another $200,000 in that market. What, $850,000?

No, probably more like $950,000 or even a little more. Okay, gotcha, gotcha. $950,000. Okay, well, wait a second. Does it have to be the exact same size house? It doesn't, but we've taken a trip out there and based on where the kind of area we'd like to live and what the home calibers are, that's what we'd be looking at. And what are you going to be making in the new job?

So right now I'm making like $160,000 to $190,000 with bonus depending on the year. This job is probably $300,000 to $350,000. Okay. So listen, with the equity in your home, if you go and just say, hey, we're going to take all of that equity, buy a $950,000 house if that's what you guys choose to do. Yeah. Yeah. Then you guys only have, you know, you have a $300,000 mortgage.

Nothing. And you're making $300,000 so you guys could pay this thing off. And yeah, it's not like you guys are moving to Southern California or San Francisco or the Bay Area or something, right? I mean, this is very doable, Justin. You're a very cautious person. Maybe a little scarcity-mindsetted at times. I'm not going to just label you that, but I'm going to say at times. So I want to be someone that just says numbers wise, there is nothing like liberal leaning on it, right? This is very conservative numbers, very doable, a very doable lifestyle

with this change if you guys choose to. And just like Ken said, you may not even need, you know, you may not want the $950,000 house. Maybe you find one for 800. But even if you guys choose to. And just like Ken said, you may not even need, you may not want the $950,000 house. Maybe you find one for $800,000. But even if you do, Justin, hear me say, if you guys took out a mortgage for $300,000, $350,000. You're still going to pay it off. Yeah, yeah. You've got a better life.

Work you love with a ladder. Boise is a wonderful place to live. Do we help with this fear? What are you feeling right now as we walk you through those numbers? No, that's very helpful. I mean, I think, you know, there's various pieces of it, and the financial one is kind of the one that's like, well, it could be an expense policy.

You won't even feel it. Do you acknowledge that what Rachel just said, if you were to do that, you wouldn't even feel that? No, you're right. Okay. Because you're making significantly more. And yeah, you'll be doubling your mortgage. You owe $150,000 now.

You'll probably owe $300,000. But yet, you're going to be making $100,000 more in the process. So yeah, you're not being unwise at all in that. And Justin, let me just say even though you guys have gone there and kind of scoped out where you want to live i would even pause on buying and go you guys go rent somewhere love for six months to a year kind of settle down and figure out okay where exactly do we want to be and then at that point you know move forward the home buying process so that you so that part doesn't stress you out right like yeah the move rent for 12 months yeah how's that help your safety gland which is sizable

and we lost it and i think he fainted i think i think i think we hit him with too much information he was like i haven't had time to process that. I'm out. Justin, are you there? Justin. I don't know. We're going to get a hold of his wife, folks. Don't be worried. We're going to check on him.

Get him a cold rag. Maybe a Pepsi. A little sip on it with a cracker. And I appreciate his little seven up. Thank you. That's what I was trying to get at. Give me a ginger ale, please no justin i think you're i i really appreciate the caution but i think this is a win-win it's a win-win from just the job standpoint is what ken kind of filtered out it's a better job for you you're going to enjoy it more uh you are going to be making more

and it's yeah slight standard but But also think about, you know, and I know Boise is a larger town in the, you know, Idaho area. Yeah. But also, you know, it's probably not that much different than Madison. I mean, like. I like what you said. I love you saying go in there for a year and rent a nice house. Settle.

Just chill. Yeah. You think that neighborhood that you saw is the one you want to go to? Well, of course. You know? Sure. I rarely buy the first pair of nice shoes I look at. I like to look around, Rachel.

Do a little research. I want to walk around in them. See. I'm going to go to this store, walk around in their shoes. And I think that's a really good idea to take your time. You've already got a massive transition. So good advice there. Do it, Justin.

Do it. Do it. We like it. She's Rachel Cruz. I'm Ken Coleman. This is The Ramsey Show. Hey, it's Ken. If you like what you heard in this episode and want to know more about getting started

on the Ramsey baby steps, go to ramsSolutions.com and click on the Get Started button. We'll help you figure out the best next step for you based on your specific situation. Again, that's RamseySolutions.com and click Get Started.