The Ramsey Show - App - I'm Struggling Paying Off Debt (Hour 1)

Episode Date: November 17, 2023

🎵 🎵 🎵 🎵 🎵 🎵 🎵 🎵

🎵 🎵 🎵 🎵 🎵 🎵 🎵 🎵

🎵 🎵 🎵 🎵 🎵 🎵 🎵 🎵 🎵 🎵 Live from the headquarters of Ramsey Solutions, it's the Ramsey Show, where we help people build wealth,

help them do work that they love, and create actual amazing relationships. You can give us a call. The number is 888-825-5225. My name is Jade Warshaw. I am joined by George Campbell. Good to have you in the house, George. So fun. It's great because look, we both have books out. That's an exciting time. I love it. If you're not watching YouTube on podcasts, we have them both displayed. George's new book, Breaking Free from Broke, pre-order today. And then you've got this one well george you're supposed to

announce mine and jay warshaw's new book money's not a math problem there can i say my wife saw your cover yesterday and she was like that's such a cute cover oh my gosh i was like you didn't say that about my cover oh so i just want you to know whitney's a big fan i love that she loves the color she loves your outfit i love that it's supposed to look like a magazine and i feel like do you feel like it does 100 yes and i feel like mine looks like honey i shrunk the kids but you know that's oh i was gonna go more for like incredible hulk like move these walls i get that a lot if i had a nickel jade for every time i got compared to the hulk i'd be broke real talk i love it but you can get your copy i would say just go on and get both of them read them both or take one for yourself and give one as a gift that's a good strategy

love it ramseysolutions.com store that's right ramseysolutions.com store to get it get involved people I'm going to get involved with these phone lines we've got Chris from Minneapolis Minnesota what's going on Chris hey how you doing. Yeah. Hi. I'm on here just to find out I have a makeup on location business for bridal parties and I started a wholesale brand from this idea for my makeup on location. Cool. And I'm looking to scale and figure out how to do wholesale for boutique stores. I have 11 locations right now where I'm selling to boutique stores.

Uh-huh. My brand, but I'm just trying to figure out how to figure out wholesale from consignment, doing a consignment or selling it wholesale directly to the boutique stores

and to see what's best. So it's your line of makeup so it's your line of makeup it's your line of makeup that you're selling yeah well it's private labeled currently um we're looking at different ways to do custom stuff because i know a lot of customers are asking for that um with the movement in the industry of having things be homemade and when you say custom when you say custom what does that mean for makeup because let me tell you what I have in my head because I want to make sure the listeners understand. I'm thinking the same way I might go to the drugstore and buy like Revlon, right, brand. You've got your own brand of makeup that you're selling.

Yep. Well, it's private. Well, so when I say own brand, I work with a manufacturer here in the U.S. So it's not my own recipe. So it would be something that I go there, find out what I want to sell through my online store and to the stores. And then I package it here. You slap your own label on it. I got it.

Yep. So yeah, exactly. Our box is here in Minneapolis. Okay. What are you bringing in right now? What's your top line revenue? Um, well that's where this, so, uh, my wedding business where we do makeup on location is actually the top revenue, two part business. So that is where, but because it's a service industry, there's a little overhead. Right, right. And I love that by the way. Yeah. So, and so where the whole brand came from is I had bridal clients.

I'm like, oh, you know, how do I touch up? You know, I need my own lipstick to carry in the day. And that's where the brand idea came from. My brand is Gunpowder and Gloss Beauty. So do you have some stores that want to carry this? Yeah, they're actually already carrying it. I have 11 locations right i just got delaware which is pretty cool i'm trying to basically small boutique stores that don't have

necessarily a brand like i want to be able to have the you know powder foundation all the different things yeah right now our category mix is just lipsticks shadows bronzer like so are you not is the problem that you're selling it to these stores people are buying it and you're not making any money is that what the problem is like well I feel like the wholesale piece I like for instance I get a wholesale order and it may be you know $300 but then I buy the goods and it's costing me uh $300 to buy you know the the product um the cost of the product in the box and all the things so i'm just trying to figure out because i have one store right now i'm testing this to do consignment with them and it's in tennessee actually it's um over in johnson city and erwin over in that area okay and uh it's actually been

good like we have a 70 to uh 20 split i take 70 she keeps 20 she has no over like investment into the into it sure um it's just what you make is what you make right forgive my ignorance where's the where's the other 10% going I'm just curious oh sorry 30 okay I was like something is not enough here okay so I feel like it's in a lot of ways it's kind of like a basic math problem right you you've got to start with some margin in mind and if there's no margin then some there's a dollar amount that's got to shift either on the cost that you're selling it to them or on the cost that they're selling it to the consumer so some of that ends up back in your pocket right right so could you just increase what you charge for the wholesalers? I could. I just feel like in the

beauty industry, you know, when they can go into Walmart per se and buy a $5 lipstick, mine is, you know, it's a good quality lipstick, you know, the no pyramids, all the different things that we try to not have in there. Um, but I sell it for 24 and they may so I'm really trying to figure out like how do I so probably what's happening is it a lot of times what I see is it's like okay like I'm wearing a hoodie sweatshirt right that I made right if I were to buy this in bulk and get you know tens of thousands printed it's a lot cheaper than if I go and say hey I just need to run a 10 right I'm I'm paying so much more per item. So it almost sounds like because you're trying to move small

and you're trying to do this, yeah, you are gonna spend more per product early on because you don't have the proof of purchase to just go out here and say, you know what? I'm gonna go to this manufacturer and I'm gonna have them do 10,000 lipsticks and 10,000 foundations. You're not there yet.

And I think the good thing is right now you are, you're going to have to pass on some of that to the consumer and you're going to have to pass on some of that to your distributor because everybody wants to make money, right? If you're not making money, you're not going to keep doing this. And if the manufacturer, you know, if the store is not making money, they're not going to keep carrying your brand. So what I would try to do is make sure the value proposition is there for the customer. Why am I going to spend $24 on Chris's brand of lipstick when like you said, I can go over to Walgreens and get one for $5? Well, you just sold it to me because I'm like, yeah, I don't want any parabens. I don't want any animal products in there. I don't

want this to make my lips crusty by the end of the day. So make sure you've just got to get creative with your branding and understand why this is better. And make sure the places that you're reaching out to, to carry this, that is like it, they're known for carrying boutique products. Like that's, there's definitely a market for people who want that.

I'm in that market. And it's just, this is not the thing to try to get into Walmart or someplace where they're carrying a lower price per item. Do you know what I'm saying? Right. But start small. Go grassroots. Try to incentivize the folks that are buying from you currently to share, spread the word. You can give them free product, work with influencers. There's a lot of things you can do. Wholesale may not be the ticket for you. There may not be enough profit margin right now. That's good, George. So there's a lot of options out there, but I'm proud of you. You're crushing it, Chris. Thanks for the call.

Thank you. Thanks for having me on. Thanks. I love that social media angle, George. That's what the money is right there. Jake, you're an influencer. You understand. Yeah. Look, I'm my influencer. Send me a couple. I want to see if it's any good. This is The Ramsey Show. You're listening to The Ramsey Show. I'm your host, Jade Warshaw. I'm joined by George Campbell. And we want to take your calls today.

We want to hear about your life, your money. You can even call us. We'll talk about your career, your relationships. Because here's the thing. It all filters together, right, George? One thing ble bleeds into the next which bleeds into the next so give us a call the number is triple eight eight two five five two two five and we would be happy to give you our take on that um the question of the day today is brought to you by neighborly your hub for home services with 19 service brands nationwide Neighborly's provider network has trusted local service professionals to handle multiple different services in and around your area.

Visit Neighborly.com slash Ramsey to find and schedule your service today. Today's question comes from Jeremy in Kansas. I'm struggling to pay off debt, not because I can't afford to, but because it's hard for me to let go of the cash that's in the bank. I have approximately $80,000 in car loans and $450,000 on my mortgage. I have liquid cash of $400,000 and brokerage of $200,000. I know it makes no sense to keep the debt, but I have a hard time not seeing all of the cash available. How do I overcome this mentality? That's a real question, Jade. That's a real feeling. It is a real feeling. A lot of

people, when they've got all this money in the bank, it hurts because they've worked so hard to save up this money and they feel like they're making a mistake by deploying it all to pay off debt. That's right. But they're forgetting what's on the other side of that. Math. Yeah. If you owe $400,000 and you have $400,000 in the bank, that $400,000 is spoken for. That's right. By that mortgage company. Yep. You're not actually free. You don't actually have this giant pile of money because they want their $400,000. Yeah. You're not going to get away from it. So that's part of it is realizing the reality of it's really not my money it's got someone else's name on it and until they're paid i'm not truly free yeah you know i think the hard part is uh so much of what we teach is not based

on math right it's based on behavior it's based on uh a feeling of freedom this is one that is based on math like the math set like if you it's it's almost its own net worth equation there right because it's like okay you've got all this money you don't really have six hundred thousand dollars that you think you have you've got 520 because of this debt and wouldn't it be nice to have all you know wouldn't wouldn't it be nice for the math to truly math and you'd be like you know what yes this money is all mine the money that i have is all mine. But as long as he's got that debt laying around, it's in his head that, okay, like

80,000 goes to my car. And then if we pull the mortgage into it, then he's negative, actually. Yeah. Because if you were to take this money and pay off his mortgage. Basic math says he's got 400 liquid cash, 200 in the brokerage. That's 600,000. He could. Okay.

So he could do both. So he could still have 70,000 left over after paying off his home, after paying off all these car loans. Yeah. And by the way, if you want to do math, buddy, that car is a depreciating asset. That $80,000 loan, well, that's now going to be on a $50,000 car. That's right. You're underwater on. And I know that because we take these calls every day on the show. if i'm you i'm paying it all off and still i'm gonna have 70 000 left over and that's gonna feel great what are you doing with 400 000 in the bank just sitting there doing nothing for you i think people just like to see it like you log into your bank account and you just like to see that number go up but that could also be kind of

a scarcity mentality where it's just kind of this hoarding of like it'll never be enough oh 100 that may be that may be a therapy situation more than a financial one that's also true i mean i can you never had money growing up yeah you all of a sudden see all these zeros in your bank account and it gives you a sense of security yes yes which is great but you also got to live your life you got to live your part of that is having no debt and there within his case this is great because it's a mortgage that he's paying off this is a forced savings account so it's not like he's not losing the money he's just shifting it over to another place if you really want to think about it like that's true jade you know people dog me for paying off our mortgage early because they went that's so dumb that he paid off a low interest mortgage early

haters you know what he could have done he could have invested that money i'm going y'all don't pay my bills okay and they don't sleep in your bed at night. That is for sure. Only my dogs get to do that. And my wife, of course. She's there too. Thank you, Whitney. She's there too.

But there's a piece of this equation where you don't know what that freedom is like to not have to pay a lender next month and the month after that. And the options we now have to invest way more, we're going to be okay. We'll be multi, multi millionaires. But in the meantime, I want to have no mortgage payment between now and retirement. What you're saying is for them, it's a case of they don't know what they don't know. They've never owned a house free and clear. So they really can't speak to the feeling that it gives you when the mortgage is gone.

And like Dave always says, hey, go pay it all off. And if you miss the debt, you can always go get more of it. There you go. So try it out, Jeremy. Love that. I'm proud of you, man. You're crushing it. And you could clear all this debt today

being baby step seven, living and giving like no one else. Highly recommend it. Good stuff. Let's see what Haley from Hartford, Connecticut is talking about. What's going on in your world, Haley? Hi, Jade.

Hi, George. How's it going? We're doing well. How are you? Doing fine. So I'm asking on behalf of myself and my husband, we're wondering, should we sell our house if we think it was a mistake to buy it? Well, what's making you think it could be a mistake? Okay. So we bought our house six months ago um and we started listening to ramsey four months ago um funny how that works really right perfect timing um but

basically we um we didn't really think it through we didn't have a budget we didn't really think it through. We didn't have a budget. We didn't, you know, we didn't follow any of the baby steps yet. And our house is 34% of our monthly take home pay. And it's just, we did buy it under market price. So we could sell it for a little more than we bought it. So we could make, I just met with our realtor and we actually could walk away with about nine to 18 grand based on what it sells for. So we're wondering, should we just, you know, we haven't been in our house very long, but should we just, you know, kind of have no shame in saying, hey, this was a mistake. Let's go back to renting and let's pay off the rest of our debt with the money that we make.

Well, let's see how much, how much debt do you have? Um, so we have about, so we're, we're in baby step two. We have our, um, our emergency, our thousand dollar emergency fund. And then, um, we are paying off. We had 10,000 in credit card debt and 18 on a car. So the 10,000 in credit card debt and $18,000 on a car. So the $10,000 in credit card debt over the past month, we've brought it down to $2,000. Oh, great. Or $8,000. We brought it down $2,000 to $8,000. Oh, okay.

Oh, it's $8,000. So $8,000 in credit card debt. Yep, and $18,000 on the car. Okay. What else? That's it. Okay. What's the household income?

So our, like before taxes or after taxes? Just gross annual income before taxes. Okay. So I make $48,000 and my husband makes $62,000. Okay. So we've got a little over $100,000 gross, and you're saying 34% is going to the mortgage, then we've got all these debt payments. I don't think this is like an on-fire sell the house tomorrow situation, but I would try to increase income for both of you, even if that's temporary for the side hustle, because I want you out of debt. You've got $26,000 to pay off now?

Yeah. Could you do that in like six months if you got real intense? Yeah. So we're doing Instacart and like, what's the dog sitting? Rover. But we're talking over four grand a month going toward the debt. That's aggressive. Right now you're doing about two. So we need to double that. I agree. And if you can pay this off fast, that'll free up some income. And if you can keep that income up, that will lower the amount of your take-home pay going towards the house. Now, all of a sudden, we can breathe and this house becomes a blessing instead of a burden. Because I mean, a long-term, I mean, we recommend that your home obviously is no more than 25%.

You're at 34. You have to ask yourself, what do I need to do to get to find that 9% over the long haul? And what does that look like? And it's a lot, but it's not a lot. You know what I mean? Can you find another $10,000 a year? Can you find another $12,000 a year? Like, what does that look like? You may not want to do Instacart and Rover forever, but how can you get your core income up 9%? And I think if you guys put your heads together and figure out what that looks like, that's really the ticket to solving this equation. And I would sell that car before the house

if we're getting to some dire straits and you're feeling the pinch. I like that. So there's an option. Can I ask a follow-up question? Make it quick. Okay, so what if we don't like the house very much? Oh my goodness.

That's a whole different question. That's a whole different question. That's a whole different question. You may end up selling. I just don't want you to think this is a fire because of the finance side. That's right. This is why we tell people only buy when you're ready. That's right. Don't get pressured into it.

One thing at a time. Pay off that debt. Try to get your income up and then we'll fry bigger fish when we get to it. This is The Ramsey Show. You are listening to the ramsey show i am your host jade warshaw joined by george camel your other host for this hour uh give us a call the number is triple eight eight two five five two two five we'll talk about the things that are on your mind concerning your money maybe it's the holidays coming up uh i read a stat george, that said the average family of four plans on spending about $1,651 on Christmas. Just gifts or like food, everything, travel?

That's everything. Which when you really think about it, especially if you think about travel in the mix, I'm like, that's not bad. But what I did draw from that is if you're not on a budget, that and more will go very quickly. Because I'm like, if you're traveling to grandma's house and you're cooking Christmas dinner and you've got two kids that you're buying gifts for, and if you're traveling and there's cousins and things, that can get out of control very, very quickly. And you start to shop for yourself, too. I do. That's a dangerous game it

is a danger while i'm here it's on sale might as well okay james in the boothless here's a poll for you when you go christmas shopping do you do one for them one for me one for them james is too selfless do you do that or do you just like no i'm sticking to at the very least do you at least buy one thing for you let's put it like that i feel like i at least buy one thing for me thank you for your honesty jade you're looking for some justification here what do you think james are you asking me personally or to do a poll like we did the other day both i mean i try my best to stick to a budget but it can be tough so you mean you don't buy another black hoodie what i have black have black hoodies to spare, Jenny. James shopping list is real sad and dark, literally. Oh, boy.

We got to take a call. Let's go to Jenny in St. Louis, Missouri. What's going on, Jenny? Hi, guys. I'm getting married soon. I'm 55. He's 58. He wants to sell his home and take the $50,000 in gain from that sale and apply it to my home, which has a

balance of $129,000. I think the money should be used differently because I am trying to get out of debt with some other debts. And I don't know what to do because I understand why he wants to do that. I just want to do it the right way. Well, it's kind of weird. I was expecting because I was kind of reading up on your call before we took it and i was thinking oh probably he's trying to take the equity out of his home to pay off her home but he's saying he's gonna sell it but this doesn't even clear it no no it'll just be paying 50 000 down off the 129 that's currently owed well there's closer to paying the house off.

There's a couple problems with this. Number one, you're not married yet. So I would not think of doing anything like this or anything else with your money together until after you're married, right? Yes. It's all going to happen after the fact. Okay. That gives us some peace. So is the idea, what's the idea? Because now you both have homes, you're married. What are you guys attempting? Are you trying to get in a situation where one of these houses is paid off and you can rent it? No, no, no. He's going to sell his home and he's going to get 50,000 in equity. He's going to apply it to my home balance. I see. I see. And what is the total debt balance you have not with the mortgage? I have $19,000 in a car, and then I have a student loan,

but I can't pay it off because it's part of a divorce agreement and we equally pay payments towards it. It's strange. And you can't pay your balance in full, like a lump sum to cover your section? I can't because the loan's in my name and it's kind of a weird scenario. How much is it? That one is $22,000. Is that the total amount or is that just your half? No, that's the total. I'm not going to lie. If it's in your name and I might be like, try to get with the judge and be like, can I pay this off? And then he pay me back?

We can go there. I might do that simply because it's in your name. I just don't want this hanging around for 10 more years accruing interest while you're just chipping away at it. It only has four years left, so I think I'm not too worried about that one. Well, if I were in your shoes, if and when you guys get married, I'd take the $50,000 from the sale of his house. I'd pay off this debt first, including the whole 22,000.

And I would do a situation where it's like, hey, I don't like fooling with this guy. It's in my past. I'm going to get debt free. If you can make it to where he pays me off, great. But I'm moving on with my life. That's what I would do. That's what Jade would do.

And I think that's what George would do too. Yeah. And I like just when you get married, then you guys do the baby steps together. And that means how much money do we all have as a couple? All right, we got the thousand dollar starter emergency fund. We have this debt. Let's knock this out with whatever cash we have. Let's build the emergency fund three to six months. Let's start investing. And then any money beyond that, we can throw at the mortgage, which may end up being less than 50. I'm worried about our retirement position, like where we are. And that was another kind of wrench in this whole picture.

Well, that's even more reason to walk it through this way because the faster you clean up this debt is the faster that you can get three to six months saved is the faster that you guys can really start focusing on the things that are going to build you wealth, which are setting aside some money for retirement and paying off your existing home, the one that you guys decide to live in, the one with the $129,000 on it. Okay. So you would agree with me and getting rid of the smaller debt first before starting to think, suck away at the house. Because with just the car being paid off, it's another $500 a month that would just go towards the house. Well, and what's going to be the household income once you guys get married? Bring home to bring home will be about 6,200 a month. Awesome. That's great. And so how quickly could you pay off the mortgage? Once you guys are married, you have no debt. We've knocked down the

mortgage a little bit with whatever cash is left over. We're talking a few years, right? Our goal is five years or less. Boom. And that would be, that cash is left over. We're talking a few years, right? Our goal is five years or less. Boom. And that would be my goal. We're going to retire when the house is paid off. And over those five years, you're also going to be investing 15% of your income as soon as this debt's paid off and you have that emergency fund. Do you have anything in retirement right now between the two of you? Between the two of us, it's maybe a little over $100,000, but I get a pension that covers about 75% of my income when I retire. Okay.

But my next question, if I have time, is I have what's called a backdrop coming when I retire to the tune of $60,000 to $70,000. It's a lump sum payment that's given by the state government for every year you work past your normal retirement and then you get your pension. Okay. That money is taxed unless I roll it over. But I was actually, when I was single thinking, oh, well, if I have anything left on the house at that time, I'll just pay my house off. But how would you, how would you utilize those funds? When do you get it? i will get it and well i won't get it till retirement which will be eight years okay so i think by then you'll have a paid for house so i'd rather roll it and save on the taxes and use that as part of your nest egg and just get it as a monthly monthly amount kind of thing okay yeah because by then you're going to be

debt free including your house so you wouldn't need to roll it to the house. Yes, and I was able to work it out so I could live on my income when I retire, so his income will be just on top of that. Gravy on top. I think this is a good plan, and most people find that when they have no payments, it's easier to retire, even if you don't have a huge income and a huge retirement account. And so that's why the focus on decreasing your expenses. I think that's a good point, George, because it's hard. We talked about this earlier. It's hard for most people to imagine a life, number one, where they have no consumer debt, but number two, where they don't have a mortgage. I mean, that's for most people, that's the biggest line item next to daycare, the biggest line item on their budget. So imagining a world

where it's like, hey, when I get my paycheck, all the money, like all the money goes to me. And when it's like that, when you then step into these retirement years, it's like, well, I suddenly need a lot less to live on because really it's just for those, what, your cell phone bill? You're telling me your cell phone bill is what's going to drain your retirement account. You got insurance, your cell phone bill, You're telling me your cell phone bill is what's going to drain your retirement account? You got insurance, your cell phone bill, and your Paramount Plus subscription because you got to watch iCarly. That's right.

You got to have it, Jade. And maybe you get a country club membership so you can play pickleball. There we go. You know? Some of the luxuries of, I want to retire and have so many options. I don't want to retire and be like,

oh, we got to now scrimp because we didn't save enough. And part of that's getting rid of the mortgage. And that's why we recommend the 15-year fixed rate mortgage. Yes, it's conservative and aggressive, but we found that people who follow the baby steps who do that end up paying off their mortgage in seven years. Seven years. So they're not going into retirement with a mortgage hanging over their head and they're figuring out when can I retire? Yeah. They got options. That's the blink of an eye,

George. And our millionaire study found 10.2 years was the average amount of time for millionaires to pay off their home. Wow. 10.2 years. And we also found that the average millionaire is not someone who's making over six figures, right? A third of them never made six figures. Teachers, right? These are accountants. What's the third one? Engineers. Engineers. There you go. I like when we debunk the myths, right? We demystify it and realize, hey, it's actually not crazy at all. It's actually pretty simple. It's just this consistent pattern, paying off debt, investing 15%. It's almost too boring, Jade.

They want something more complex and crazy. But that's it. That's how it's done. That's how it's done. This is The Ramsey Show. You're listening to The Ramsey Show. My name is jade warshaw this is george camel make some noise george whoo all right that's all you get i wanted them to know that you were there i wasn't just talking you know the people on the podcast they don't know we could tell them anything i'm rarely asked to make some noise i will say that much so i didn't know what to do there well we're taking

your calls about your life and money give us us a call. The number is 888-825-5225. And we'll try to help you out. But I do want to tell you guys, number one, I'm so thankful for all of the listeners. I'm thankful for everybody who downloads the podcast, everybody who logs in and checks us out on YouTube. It's really just the reason that we're here is you guys. And we appreciate your support. And if you're looking for another way to support, something you can do is consider liking, subscribing, and sharing the show with your friends, your family, your coworkers, anybody who you feel like is broke and needs some help. If you're like, wait a minute, I noticed that Joe pulled up in a brand new lexus he's got the same paycheck that i have something's wrong share it's a nice way to do it hey i love this show you should check it out

yeah thanksgiving is coming up you're sitting down at the table uncle boo-boo is talking about whole life insurance yet again share the show do you see what i'm saying do you see the train of thought that i'm on here like subscribe share when you share. When you do that, not only does it help us, not only does it help you, it helps other people, right? It boosts it up in the algorithm. They discover this very, very important resource and they're able to change their life and money

because of it. So consider doing that. And we would say, thank you. All right, let's go to the phone lines. We got Taylor in Kansas City. M-O, that's Missouri, not Kansas. All right. What's going on, Taylor? Hey, guys. I appreciate the time.

No problem. How can we help? Well, my mother-in-law has recently purchased a house here in Kansas City where my wife and I live. And she kind of told them, you know, hey, in the future I might move back, um, be closer to family and whatnot. And she kind of came to us and said, or not kind of, but she did and said, Hey, you know, I think you guys should live there and, um, you can live there rent free. Uh, you know, I just, if you guys want the house, um, I just don't want to deal with a renter. Um, but you can live there rent free. And so we were like, wow, uh, this gives us an opportunity to kind of, um, take our current house that we live in. Um, and then we were like, wow, this gives us an opportunity to kind of take our current house that we live in. And then we were just wondering, like, should we do this and rent out our current house that we live in and pay that house off? Interesting.

So your mother-in-law doesn't live there? I know, it's a weird... Is that right? Is it an empty house? The one that she has? Yes. Yeah. She's not living there with you? no she she lives a little over an hour away what was the purpose of her getting the house oh just for hopes of possibly moving

back closer to family so in the future at some point what um what happens if next you know what happens if a year and a half from now she's like i'm ready so i'm ready to move back what happens if next, you know, what happens if a year and a half from now, she's like, I'm ready. So I'm ready to move back. What happens? Then I think we would just move back into our current home that we're in because we don't plan to sell it. Okay. Interesting. Oh, this is a very interesting predicament. Does she have a mortgage on that house? No.

Okay. So it's paid for. So she's still paying insurance and property taxes. Is that just her gift to you? Yeah. And who's responsible if the HVAC breaks? So that's the kind of thing we don't really know. I'm guessing that you would advise us to get that in writing. A hundred percent. Do you see where I'm going with this though? All these little nooks and crannies that we thought life was going to work out perfectly and now the roof needs to be replaced and she goes well you guys are renting for free i feel like you should cover it i don't like the deal yeah i i i don't like the deal um because of what george just said and the the here's another part of it um i feel like when you buy a when you if you purchase a piece of property for the purpose of renting it

Your heart goes in a different place. You're like, whatever. It's not my house. I don't it's it's for renting It's to make a profit when you take what you know will Is supposed to eventually be your personal residence and you rent it out I think that it's not the same house anymore and you're going to be like I This dude's been in my bathtub. Like you're, it just feels different. And so I think that taking your home, that's been your home for a while. Then you go live in this other house. You let renters rent there for two,

three years, and then you want to go back to it. I don't think it's going to be the same place anymore. So that's my second reason that I'm not going to say it's, I'm not going to say that it's wrong to do because it's not wrong, but these are just the reasons that I wouldn't do it. What do you think, George? Yeah. I mean, we've seen worse situations on this show. If mother-in-law was living there, this would be a different situation. If she had a mortgage, this would be a different situation. So there's just a few red flags that make me pause and go, is this the right move? Do you guys really need the money?

Are you trying to pay off debt? Is the mortgage too much for you? You know, what's your financial situation that's driving you to do this other than, hey, free rent, we could make some money renting our place. Now you also become landlords and have the hassle and risk of having tenants and you're responsible for, you know, a lot of the things that happen in that house. Right. And that's actually one of the reasons why, because we, you know, I think we would like

to eventually become landlords. And so this is kind of a get your feet wet scenario where we don't have a whole bunch invested and it's like something kind of goes wrong. We still have a place to live that we're, you know, doing rent free. Here's a wild scenario I just thought of, Taylor. What if you got a tenant in your mother-in-law's house and you guys were kind of the property managers? Interesting. And maybe she gave you the majority of the proceeds. That way, you're not having to make this move. Oh, that's good, George.

Two birds, one stone here. You get to taste the waters of the landlord life. You get a little bit of money back. You get a little bit of money back, and the risk is still on her. She needs to know that. And you get to keep your house. But either way, the risk was on her. If the roof needs to be replaced, it was either going to be on her or on her, not on you or the tenant. So I would offer that as another scenario versus uprooting your current life. That's the move. I vote that that is the move, Taylor.

Okay. That's what we do on the show there's no downside and it takes the risk oh totally off of your plate and it takes anything that could possibly happen uh with repairs and all this stuff that makes those awkward money conversations right with family where it's like hey um you know grandma we need some money for the pipes froze you know it's just it takes that away because the more conversations that you have like that, it just eats into the relationship just a little bit every single time.

So I really, George, I think that is a winning, a winning solution. That was good. Thanks, Jade. At least one time a day, I have a decent idea. That was good. I'm going to tell Whitney about that. I'm going to be like,

George came through with a great idea today. She'll be shocked. Mark it, put the tally on next to his name uh what do you think george can we talk to julian let's do it what's going on julian from san antonio texas hi guys hi beyond oh well i'm gonna get straight to it um i'm a i'm a police officer from my county uh i've been there for nine years and i've built a retirement there now i have an opportunity to go work as a security guard on security guard at a school district at a higher pay rate than what I am getting paid right now as a police officer. And safer, I gotta assume. Yes, but I am not so sure if I should make the jump because my county has a great retirement

system where for every dollar I put, they put two. So you get a match? Yes, two for one. What's your new retirement plan going to be? It's the TRS, the Teacher's Retirement System. And so they just pull a little of your check and throw it in there? Yeah, I was explained that it was years of service times 2.3% times average salary. How old are you?

I'm now 35. And how much have you put into retirement thus far? So far that I... You're breaking up on us, Julian. Speak right into the phone. Oh, I'm sorry. I have $33,677. Okay.

And how much debt do you have? Do you have any debt? No, no debt. How much higher paying is this job? Well, right now I get paid $20.45 an hour, and the other one I'd possibly be making $30 an hour. Okay. I'm going to be honest with you.

Working somewhere nine years and you're at $20, I'm taking this leap, man. Me too. And it's safer. It's a safer job. And you can make up for it through retirement. You're 35. You got another, you know, 25, 30 years to start investing. And you'll do that since you don't have any debt. I'm taking this higher pay. Your income is your greatest wealth building tool. And so that's going to supersede this retirement plan, my friend. But thank you for your service to your

community. Yeah, that's amazing. I love that. I love that he has the opportunity. Yeah. Ooh, George, that does it for this hour. 50% raise right there, Jade. It's a good day. I know, right? It is a good day. I love it. That does it for this hour of the show. Be sure to hang with us for next hour. It'll be me and George here with you. We'll see you next time.