The Ramsey Show - App - I’m Worried We’re Going To Run Out of Money (Hour 3)

Episode Date: July 25, 2023

Dave Ramsey & Jade Warshaw answer your questions and discuss:   "I'm worried we're going to run out of money," "I can't get my wife on the same financial page," "My student loans feel impossible to pay off," Take Control of Your Student Loans, "I don't know what to focus on next financially" Support Our Sponsor: Neighborly Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Here's an EveryDollar deal just for our listeners: get a 14-day free trial PLUS $15 off your first year of premium. Click the link below and start budgeting today! Want a plan for your money? Find out where to start: https://bit.ly/3cEP4n6 Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6 Interested in advertising on The Ramsey Show? https://ter.li/s64ye3 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, all Ramsey personality, is my co-host today. that they love and create actual amazing relationships. Jade Walsh, all Ramsey personality, is my co-host today. Open phones at 888-825-5225. Mia is in Massachusetts.

Hi, Mia. Welcome to The Ramsey Show. Hi. Thank you for having me. Sure. What's up? So about three weeks ago, I went to one of those required retirement meetings for work, and they referred me to a debt counselor due to my debt, and the debt counselor recommended bankruptcy. So I went home and spoke with my husband. We bought your book, The Total Money Makeover, read it in two days. We're fully committed. We have about $1,500 already in an emergency fund, so we're trying to move on to baby step two with the debt snowball. We stopped using all our credit cards. We listed all our debts in order and we're trying to make a budget. The budget is really hard because I have five kids and it seems like emergencies

are constantly happening. Last month we spent over $3,000 in car repairs. And just yesterday we had like a surprise $50 saxophone fee for my son. There's just so many unexpected fees and costs for seven people bumping around in the world. Prior to this money makeover, we live really simply. We only went out to dinner like once a semester for good report cards. Our only vacation this year was a four day camping trip in a tent. So, you know, we're selling everything. We're selling so much that the kids think they're next. But I'm worried that we're still going to end up with too much month

and not enough money and that we won't even be able to get to the debt snowball. How much debt do you have? I have, let's see, 20, 34, 37, 47 with the car and not including my mortgage. And how much of that is the car? Ten. Okay. And how much of that is the car? $10,000. Okay. And what's the other $37,000? All credit card debt except for $3,000 in one last kid in braces.

Okay. So $37,000, $33,000 in credit card debt. And so you've been covering all of this chaos and disorganization and shortages with credit cards in the past. That's where $33,000 came from. Am I right? Yes. Okay. So you made a good decision because bankruptcy really won't help you.

You'll be right back here 10 months later if you don't fix this on the core. What's your household income? $150,000 between the two of us before taxes. Good. Okay. You're all right. What's your house payment? $920,000 a month.

Oh, you're definitely all right. Okay. You're going to make it. All right, here's what first happens, okay? To start with, saxophone payments aren't a surprise. That's a known quantity that everyone knew was coming. Just no one is organized in this house enough to bother to tell everybody what's going on. Okay?

But, I mean, that's not – they don't suddenly say this is going to happen. So there's two opportunities. But we've got to – one of the things we had to do, our kids, our three kids, was to train them to not bring us any surprises. They've got to tell us about everything early and often so we can get it into the budget. Or they're going to not get to do it that's what ends up happening and about the time they miss out on one thing because they forgot to tell us that little georgie has a birthday party well you don't go because we don't have it in the budget to buy a little georgie a gift and you're not going over there looking like a freeloader so your little butt's staying at home next time you'll tell us about the time i did that twice all of a sudden they became experts on planning at eight years old

yeah and so what's happening is you guys you know you have a chaotic life because you have a big family everybody working everybody's running different directions and the chaos is showing up in the disorganization of the handling of the money and it's costing you all of your peace and a lot of your money because you can't you can't because your budget jade and i both did it in our head while you were telling us you're you're completely able to make these this work yeah the good news is you know up until this point you were just flying by the seat of your pants but now you've read the the book and you're like, okay, we've got to get on a budget. And now you're going to start to implement that. And you will find, you know, it's going to take a couple of months to iron that out and get it really where it's, you know, you're not going

over it or busting it in certain areas that where you're really understanding, okay, this is what we spend. This is what we can spend. And in your situation, there's, you got five kids, there's going to be a lot of line items on there. and it's something that because of the size of your family this idea of set it and forget it is not it shouldn't work for anybody but it's certainly not going to work for you exactly you're going to have a new budget every month and it's going to include this month has saxophone payment next month does does not, hopefully. And this month has a field trip. Next month does not. And you're also going to have some miscellaneous category for just miscellaneous kid things that come up.

Because it's predictable that one of them is going to the pediatrician at least every 60 days with five of them. Okay? That's fairly predictable, whether it's the flu or stitches. I don't know. But one of them is going to go get a doc bill. Am I wrong? No, you're right. How old are they?

They are 11, 13, 16. My 18-year- old just graduated high school. My 21 year old has autism. So he's going to need it a lot longer. So it's not as much as not as much pediatrician as it is. They eat a lot. Or football game, basketball game, all that stuff. Yeah.

You got a house full of teenagers. So they eat everything in sight and they, and they're, you know, the hormones are pumping. So there's a lot of pumping so there's a lot of drama and there's a lot of stuff going on i mean and and if you let all of that infect your budget instead of you guys controlling see the trick with budgeting is you flip it and and it's hard it's very difficult for the first three months but you flip it and you say i'm going to make the money behave i'm not a victim to a lack of money i'm going to tell this money what to do and by doing that i'm going to make some choices i don't think you've been overspending i don't think you're out of control i don't think you're buying

a bunch of crap you can't afford you didn't call me up with a fifty seven thousand dollar car payment you call me up with a ten thousand dollar000 car payment. You called me up with a $10,000 car payment, and you make $150,000. But I do think you've got autism and teenagers, and you've got a bunch of them. And so you're just in the middle of chaos and disorganization, and that's eating your lunch literally. It's eating your money. And so you have got to get up above it and make all this crap calm down, line up, and behave. And that includes some of the behaviors with the kids, but most of all it includes you guys saying, okay, this is where every dollar is going.

Because if you start at the top with your household income and you stop your 401K and you're not getting a tax refund because you're not having too much withheld and you don't have anything coming out of your check except taxes, and you sit there and you go, okay, I 000 bucks i got a 900 house payment i got a car payment i got food that is equal to this and there's no restaurants in that because i'm getting out of debt and i've got uh and you lay this out you can do this you can do this mia there's room in this and it's possible it doesn't you don't feel powerful right now, but you've taken the first big steps away from the cliff of falling off into bankruptcy. And you're just three steps back inside. We'll help you. Okay. But first thing I want to do is encourage you and tell you there

is enough money here to make this work. And it's going to be hard, but you can do it. You've got the stuff, but it is a matter of taming the chaos, tiger. Hang on. We're going to put you into Financial Peace University, and if you need more help, you call us back. We'll help you more, okay? Jade Walsh, all-Ramsey personality, is my co-host. Our question of the day is brought to you by Neighborly, your hub for home services.

Neighborly has 19 service brands nationwide and a network of local service pros. Window Genie, Grounds Guys, and Mr. Handyman, just to name a few. What a great company. Visit Neighborly.com to find the available service providers near you. All right. Today's question comes from Samuel in Texas. A friend of mine got me hooked on baby steps and gave me a copy of your book, The Total Money Makeover. I read it. I loved it. And I'm making my way through the baby steps. I paid off all my credit card debt, two cars and have a thousand dollars in my emergency fund.

Way to go. But I cannot get my wife on the same financial page that I'm on. She thinks we have her money and my money. She won't budget. She won't have a joint bank account with me. I feel like we are never going to achieve our financial goals or become completely debt-free if we are not on the same page. What do I do?

Man, this right here, this is the quandary that so many people find themselves in it sounds like based on the question that he did this while they were still married it wasn't like he did this ahead of time I'm guessing um I don't see anything that indicates that he did it before they got married so it sounds like he kind of just took matters into his own hands and said look this is the way the way. This is the way to freedom. I'm going to start whether you want to come with me or not. And even in the midst of that, she still doesn't want to get on board. You know, Dave, in those situations, there is something going on that's deeper than money. There's a marriage issue. There's clearly a trust issue. If somebody, a spouse doesn't want to share money or a bank

account with another spouse, it's like, well, you don't trust me. I don't care. You do not trust me. And that is an issue. And so obviously I would suggest you got to go to counseling, got to. And then there's a situations where the other, Dave, we were talking about this this morning. There's a situation where the other spouse won't go to counseling. And it's like, what the heck do you do? She needs a vocab rehab, obviously, but you cannot force people to do things. All you can do is tell them, hey, you know, this is bothering me. I think that we should be on the same page. I think that we should go to counseling. That's really all you can do and then lead by example. Yeah. All the data, this is me if I'm you talking to her. I've gotten out of debt. I've proven that this process works. I'm winning with money. And all

the data says that if we want to build wealth, the probability of us doing that without working together is very low all the millionaire statistics tell us that and you can read baby steps millionaires if you want to know that they're in there okay as we did the largest study of millionaires ever done in north america we discovered that almost none of them do it without spousal agreement. So it needs to be solved. And so, you know, and I think Jade's right. I think something else is going on here. So why is it that she doesn't want to combine your money?

Why? She thinks you're going to control her. You've been so enthusiastic with this Ramsey stuff. You turned my name into a cuss word in your house. You're, you know, you think you're being excited and fired up, and she feels like she's getting ready to lose her vote. Or she grew up in a house where she was controlled by money. One of them. Something is driving her fear. Yeah. But really, the quality of your relationship is being impacted by whatever that is. And money is just a part of it.

There's other things that she doesn't want to share with you, too. For some reason, you know, she doesn't feel safe with this. And I'm not saying you're a bad guy. I am saying you might be overly fired up and enthusiastic. And you went running off with your hair on fire that's right and all she sees is smoke and so um she's like i don't want you're not coming in here you're not bringing that crap over here and so uh but you need to get into why it is that she doesn't trust you does she think you're you know you've fallen for some cult or scam or something

or why is it what's going on yeah if he's a guy that's always bringing home, and I'm not saying he is, but if he's a guy who's always bringing home some harebrained scheme, and this is another one in a series of. I mean, my wife, we've been married 41 years, and occasionally she'll go, you know, I don't know if you are, but you sound like you're scheming and scamming. And it activates that in her. Yeah. You know, like back in the day when we went broke,

she sees a little glimmer of that portion of Dave and she don't want to deal with that guy again. Yeah. You know, and that's my wife. That's my wife talking about it. So, yeah. But it is not okay for this to continue the way it is. It's not good for you.

It's not good for her. It's not good for her. It's not good for the probability of your wealth building. It's not good for your relationship because there's something under here that's boiling and it will come to the surface. It will come blasting to the surface in the most inopportune way and in the most horrible of circumstances

or you guys are going to draw it to the surface and heal it. So I'm drawing it to the surface. I'm going to start with some conversations of, why don't you trust me? Why don't you trust me enough? You trust me enough to share my bed, but you don't trust me enough to share your checking account. That's kind of weird.

That's kind of weird. And I got to say, if you're married, let's just say it's not his abrasive personality. If you're married, the hope is that you know enough about your spouse that even if you don't know exactly what it is, you might be able to go, I think I get where this is coming from, right? And try to approach them on that level. Is it from her former marriage? Yeah. Or her dad run off with the money when she was 16 and left her mom high and dry.

I don't know why it is. Maybe it isn't him. Maybe it's something back there that she's, but she said, I'm never going to let them get to me. Right. Whoever they are. And now you're they. Yeah.

Well, that's got to be fixed. That's got to be fixed. So, yeah, if she won't go to, if she can't begin to have a discussion about this calmly and rationally and say, what's really going on here, honey? Why don't you trust me? Then you need to go see a marriage counselor, and hopefully she'll come with you. But if she won't, your marriage counselor will give you more ways to talk to her, because I can promise you 10 years from now, you guys won't be together if you don't solve this.

And that's good, Dave. Even if she won't go, he still needs to go. He'll go anyway because you'll get words on how to speak. What marriage counseling is is relationship training. That's what it is. You're going to a training class on how to do relationship. And the counselor can guide you through how to work on this and then guide you through how to deal with your own emotions on it

because you're going to reach a point that you're disgusted with her lack of trust. That's right. Who wants to hang out with somebody disrespecting you all the time? Yeah, and you have to have mutual goals in a marriage. You have to have something that you're working towards together. Otherwise, it's like, okay, you will end up going in different directions, quite literally. Yeah, you're growing together or you're growing apart. There's no in between. Sebastian is with us in los angeles hi sebastian welcome to the ramsey show

hi how are you doing thanks for taking my call sure what's up so um i have about 150 000 in student loans um just graduated, so this will be my first time, you know, tackling this debt. Holy crap. What's your degree in? Are you a doctor or a lawyer? So a little bit of, I'm a doctor, a PhD. PhD in what? Oncology research, and I'm a nurse practitioner as well.

Okay, good. So you got a new gig doing this? I have a new gig. Making what? $250,000. Thank you, Jesus. That's good. Thank you, Jesus. Big shovel. Good. But you in Los Angeles, though. Yeah, but that's okay. And you're single. You're single, right? I'm not single. Oh, you're married. Okay. Engaged.

Oh, okay. When are you getting married? That's what I kind of wanted to discuss because I have been kind of pushing marriage back. No, no, no, no, no, no. You only got $150,000 in debt. You make a quarter million dollars a year. What did you make two years ago? What was your personal income two years ago while you were in school?

About $90,000. Okay. So live on $80,000 and pay your loans off in two years. But don't wait to get married on student loan debt. Just go pay it off. Yeah. That's not really a reason. That's not a reason to not get married. Yeah. $250 minus $90 leaves $160, not counting taxes. That gets you out of debt in two years. Easy. Live on less than you used to live on and don't be buying a

bunch of crap and have an inexpensive wedding. Let's get married now. Yeehaw. And let's get these loans paid off in the next two years. That's what I would do. You can do this. You got a great income, man. Hey, you guys. Health insurance costs are only moving one way. And that way isn't down.

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chministries.org slash budget. That's chministries.org slash budgets. Jade Walsh, all Ramsey personality is my co-host today. Thank you for joining us, America. We're so glad you're here. Open phones at 888-825-5225. We're here to love you enough to tell you the truth about your life and your money. It's what we do. Thanks for being with us. Justin is with us in Corpus Christi hi Justin welcome to the Ramsey show hey Dave I'm good to talk to you and are you still doing better than

you deserve always better than I deserve brother what's up just a short back story is after I lost my mom in after Christmas of 21, her life insurance that redeemed was $400,000. And after I paid the funeral and her expenses, it was enough to get me out of debt. So I finished Baby Step 3 back in about six weeks ago, actually. And honestly, Dave, at this point, I'm scared. I have lived my entire life broke. I was broke the day I was born. Because I'm the only child of a single parent.

My mom, we lived in poverty my entire childhood. So this is unknown wars to me, if you know what I'm saying. And I don't have the income to buy a house right now. So I'm just curious. I've always seen YouTube videos that, babysat 3b is put to be say 20 per house but um 42 single unattached no kids no media family i don't need to buy a house right now what um you got 400 grand and i'm,000. Okay. And you paid the funeral, and you paid off how much debt? $48K in student loans.

I paid my car off, which was another $9,000, another $20,000 in old medical and credit cards. It took me about eight months to find them all and pay them all. Okay. How much money do you have left? In my savings, I have $10,000. That's my full funded emergency fund. Okay, and you're 100% debt-free, and that's all you ended up with.

Okay, good. All right, I got the picture. I'd like to call it, that was the last gift Mom made, because I told her about you, and during 2020, I was trying to get on the path, and she said, yeah, that sounds great, go for it. And if anything, this was her last gift to me. It was, hey, get out of debt.

I'm sorry. Sorry that's the way you got it. I'm glad it worked out good for you. What do you do? What's your income? I work as a restaurant assistant general manager. I make about $33,000. Okay.

So what are your career aspirations? What are you going to do with your life, man? You're 48. Did you say you're 48? No. I'm 42. 42, okay. So what are you going to be doing when you're 52 that's so much more exciting and cool than what you're doing now?

Truthfully, I haven't thought about that. I've been so focused on trying to be the best leader i can because i work with a lot of teenagers i need to set a good example for them i wasn't suggesting you abandon your job i just asked you what you were going to become i hopefully become a gm okay i like the place i like the place i work at i work i like the people i work with and okay what does it what does a GM make? I believe my old one just resigned. We're getting a new one next week, 48.

Okay. I think so. They obviously never told me my salary, but they get a base salary. They're the only ones on salary, and then they get a bonus based on how much the business does each month. Okay. All month. Okay. All right, good. All right, so we got a plan. That's good.

And why is it you don't want to own a house? I just feel like it's a little superfluous. I'm sorry, superfluous, because I don't have a wife or kids. I mean, it's just me. I live in a one-bedroom that's within my budget. I pay $69 a month plus utilities. I'm comfortable. But at the same time, I've seen some of your old YouTube videos where, I mean, I don't want to be stagnant. I mean, I want to keep moving, but

honestly, I don't know the direction to move. Well, there is part of this that you're looking at the here and now. 42 years old. Right now, you're unattached. Maybe in five or 10 years you won't be. There's this piece of this puzzle that's an unknown and you kind of have to think through that. You have to look at your future the same way Dave asked you, hey, what do you want to be doing in five years? What do you want to be doing in 10 years? You have to ask yourself about your life in general. What do you want it to look like? We've seen how this money that your mom left, whether it was through insurance, how it's changed your life, right? So you have the ability to do that same thing in some way, right? There's a purpose. There is still a purpose for you,

regardless if you have a wife and kids, and that purpose can have financial attachments to it. But more than that, we know that homeownership is a part of building wealth. And even if you don't want to buy a home right now, I do think it's something that you should and can aspire to um with your income living in corpus christi i think it's still something that you can have i just think it's something you're not used to like you said you're not used to where you're at financially and so you don't know what it looks like to really prosper in and of your own right on your own. And so it's like, I've never seen that before. I don't, well, let's just stay where we are. I'm comfortable here mentally and in every other way. But I would challenge you to move past

that and really dream beyond that because that's what you're headed for. Yeah, that's good. And Justin, on the logical side or the economic side, let's work through that for a second. Short-term renting is not a problem. Long-term renting is a problem, and here's why it's a problem. The property that you're living in is going to go up in value in the next 10 years substantially, and the landlord is going to benefit from that, not you. So if you live in a property in Corpus Christi, let's say you bought a two-bedroom condo, okay,

just similar to what you're in now, and you paid $150,000 for it, okay? Let's just make that up. I just made that up, all right? Then in 10 years, that thing's worth $250,000, and you lose that $100,000, an increase in value, because you didn't own it. The second thing that we know is 100% of the time, over a 10-year period of time, rents go up. When you buy a condo at $150,000 and your payment is $1,100 or whatever it is, your payment does not go up. So what you've done is the largest line item in your budget is housing,

and you have stabilized it into the future when you buy. You're locking it in into the future when you buy. By not locking it in, you're 100% guaranteed your largest line item is going to go up. I mean, you're're 42 think about when you were 32 what rent was you know i'm 62 my rent when i was 22 was 235 dollars for a one bedroom that sharon and i moved into after we got married i mean that's hard to even grasp in today you know 41 years later right very very hard to even get my head around that because you can't even walk on the property now for 235 dollars i mean it's just you know but but uh and so you think about over

the scope of my life like 40 years where's your rent gonna be it's gonna be 235 versus 1235 today and you know 100 of the time that largest line item is going up when you're a permanent renter so you are always paying more and someone else is benefiting from the increases in value not you so short term i'm all about renting when you're broke you should rent until you get yourself straightened out don't buy a house just because buying a house is a good thing because it's not a good thing when you're broke but long term home ownership stabilizes your largest line item in your budget locks in your monthly cost to a fixed amount and you have this large asset that is going up in value these are two wonderful personal financial benefits to home ownership so plan on in the next 12 to 18 months finding you a

little condo to buy doesn't have to be anything fancy right we're not asking you to go crazy and you don't have to mow grass i don't care you know if I'm you, I'm not mowing grass. I'd get a condo. You know, it doesn't matter if you have kids. It doesn't matter if you have a wife. That all applies, period. Future financial planning is important for everybody. It's really the moral of the story. Yeah, and if you buy a condo in five years from now, your whole life changes and you sell it, you're going to make money on it. So just pick a good one in a good neighborhood,

something solid, conservative, and not straining you, and stabilize that line item in your budget. This is The Ramsey Show. Our scripture of the day is Proverbs 411. I have instructed you in the way of wisdom. I have led you in upright paths. Roy Disney said, It is not hard to make decisions when you know what your values are.

You know, that's Walt's brother. We've said that around here in Entree Leadership for years. Once you know what your value system is, you know what your core values are, a lot of your decisions are already made for you in business. That's right. The problem is that you have to do them then. And there's always conflict and people that don't understand and they don't like it. And there's discomfort and awkwardness and all of that. But that doesn't change the value,

and it doesn't change the decision. It's just, oh, crap, now I've got to shovel the stable. There's just a bunch of maneuver in here. Yeah, I just got to do it now. It's the same thing when you commit to a plan, though. All your decisions are made for you. If you decide to follow Christ, you follow the Bible, all the decisions are in there.

You just got to follow it. Same thing when you commit to a plan like what we teach on here. The decisions are made. It's just hard to do this stuff. Yeah, exactly. Joe is with us in Huntsville. Hey, Joe, what's up? Joe, how's it going, Dave?

Better than I deserve, sir. How can I help? Same with me. Hey, we're in a, me and my, I'm 23 years old. I'm in an extremely unique position, and we're grateful. I would just like to have some advice for, hey, what's next? I feel like we're doing everything right, but, you know, just when you think you are, you know, the good old faith puts you back in check.

So, like I said, I'm 23. I am married. I got married at a young age, and we are doing really good for ourselves. We have no debt whatsoever. We both graduated college with no debt. We have new cars. We bought a house right before COVID, and that has doubled in price, and we got such a good interest rate on it, we turned it into a rental property,

so I'm getting 100% profit for that for the rental house. We're on our second house right now. I'm investing into a Roth IRA. I have emergency funds set up, and I have $20,000 sitting in a bank, and it's continuing to grow because we have a good job. So what's next? What is my next goal know what is my next

goal what's my next set so i guess wealth building yeah well joe you are doing good i'm proud of you well done what's your what's your household income sir uh together my wife and i make um about 100 a year and keep in mind you know we're only 23 and she's a teacher and she's second year teaching and uh i own my my own company that's extremely successful and doing very well so we um this is just the beginning levels and we can we're going to make a whole lot more um good okay um what what i want to encourage you is the uh you are doing very well. There's so much energy and so many positive adjectives in your description of your situation that it makes me a little bit fearful that you're going to try to move too fast. If you stumble, it's not going to be because of what you've done so far it's going to be because you

get uh a little cocky and uh you know uh jim collins wrote a book about companies failing and he said one of the reasons they fail is hubris which is i got arrogant and i'm not saying you're arrogant joe at all okay but you are fired up and you are on top of the world and you got the tiger by the tail and you're smiling yeah we're money hungry yeah it's fun and so what i'm going to encourage you as the old guy to do is slow down a beat not stop being ambitious not stop striving for success but just slow down a beat when i your age, I started buying and selling real estate. I had nothing. I went to the bank and borrowed the money to do my first flip. And I began flipping real estate.

To date, I'm now 62. Getting ready to be 63, I've owned over 2,000 pieces of real estate. So I love real estate. I love this. But what happened to me was I got rich quick. By the time I was 26, I had a million-dollar net worth. I owned $4 million worth of real estate. But I had borrowed up to my eyeballs.

I had $3 million worth of debt. The bank got sold to another bank. They called our notes. We spent the next two and a half years of our life losing everything we owned. And with a brand-new baby and a toddler, we were bankrupt and got to start over when I was 28. I don't want that for you. You're not as crazy as I was. You haven't moved as fast as I moved, but I'm just trying to give you the warning to say,

okay, let's slow down a little bit. You're going to be a multimillionaire, Joe. When you're 40, your net worth is going to be well over $5 million. Okay? Wow. I can promise you that. But I promise you it won't be if you keep borrowing money and buying real estate. You're going to get yourself in trouble. Slow down a notch.

Next goal is pay off your house. The next goal is pay off your rental. And the next goal is pay cash for the next investment property. And you're going to be debt-free and pay cash for things every day from that point forward. That's what Jade and I would tell you to do. Okay. But right now it feels like it's impossible for you to mess this up. It is not impossible for you to mess this up.

You can mess this up. I is not impossible for you to mess this up. You can mess this up. I did it with zeros on the end. Can I ask you a question, Joe? What was your next move? I'm just curious. What was your next move going to be? Well, I have, because my father, he has a lot of really well connections, and one of his good friends has hundreds of kind of

rental places down in the college town auburn university so i'm taking getting a lot of my advice from a lot of wealthy people that i currently know and he that this is what got my ambition to do but uh my next goal was to um kind of every year for the next five years buy build a new house from scratch because, you know, you get all the warranties and all the proceeds from building new. I mean, they're just as cheap building them new than if you buy them, you know, fixer-uppers. So my ambition was to buy a new house every year,

move into it for my primary residence, and then, you know, get a conventional loan with a with a low interest rate until they get lower um again but kind of buy build a new one each year and that when i move out of it then i'll start renting that one and my plan was to do that for the next five or ten years so every year just build a new one move into it for a year and then start to process over and then keep renting so with what dave said that's the opposite of that or if you did it you'd be paying cash yeah you'd have to slow down a little bit and pay cash for the get your house paid off get the other one paid off and then pay cash for the next move and if you start doing that every time you do it you pay cash for it i'm in

yeah you're going but but that's going to take you know you're going to you're going to slow down you're going to do every going to slow down you're going to do every other year at the most to pull that off i thought about getting the incomes from so if i have five rentals i'll get those five extra incomes and pay off the lowest one first and then once that 100 profit then i start doing the next one and then the next one except that is spoken like a naive landlord, okay? So, again, I own several hundred million dollars worth of real estate, more than your dad's friend.

All things have to go perfect for that to be the case. Yeah, and 100% of the time, renters don't pay, okay? You just can't count on it. I mean, most of them pay. Most of them are good people. You do a good job screening. They don't tear up stuff. They pay the bills, and of them pay. Most of them are good people. You do a good job screening. They don't tear up stuff. They pay the bills and everything's okay.

But this idea that you're making 100% profit is just false. Yeah. Because after you pay, after you have vacancy, after you have credit loss, after you have an eviction, after you have someone go into Chapter 13 and it takes 14 months to get them evicted because you have to get the federal court permission to do it, you're going to start understanding then that renters really aren't you know this this thing where you've got all this dialed in it has to go perfect and it never goes perfect for your plan to work so i don't think i won here i think you're going to do

whatever you're going to do yeah i think but um but i think you're an impressive young guy and i wish i could get you to slow down a little bit because I think you'd have a higher probability of ending up very wealthy than you would following your dad's friend's process of going deeply into debt. If you want to do that, you probably need to follow my friend Robert Kiyosaki. He believes in borrowing all you can borrow, and he's made a lot of money doing it. He and I are friends. We like each other,

but we completely think the other one's nuts. I mean, this guy is sprinting. And when you're sprinting, it's a lot easier to trip and fall as opposed to just a nice light jog. Just jogging out. I'm in for a light jog.

You know? Yeah, it's different than the old sprint. Yeah. 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.